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FCA Admits to Under-Reporting Injury and Death Claims

09/30/2015

After it was discovered that FCA violated U.S. safety laws in a number of recalls, the company was placed under strict scrutiny by the National Highway Traffic Safety Administration (NHTSA), which uncovered the “deficiencies in its TREAD reporting,” according to FCA.

FCA was notified in late July of the “significant” discrepancy by NHTSA, after which the automaker began its own investigation that lead to the discovery of under-reporting.

The Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act, requires all automakers and their suppliers to notify NHTSA of all accidents involving possible defects in their vehicles along with all warranty and property damage claims received from customers.

“Preliminary information suggests that this under-reporting is the result of a number of problems with FCA’s systems for gathering and reporting EWR data,” NHTSA said.


FCA did not release details on exactly how many incidents went unreported. “FCA US promptly notified NHTSA of these issues, and committed to a thorough investigation, to be followed by complete remediation,” the company said in a statement. “FCA US takes this issue extremely seriously, and will continue to cooperate with NHTSA to resolve this matter and ensure these issues do not re-occur.”

Early in 2015, Honda paid a $70-million fine for under-reporting death and injury claims under the TREAD Act. FCA has already been forced to pay a $105-million fine over mishandled recalls, while the brand also initiated a buyback program for thousands of Ram pickup trucks.

This new violation may also result in fines from NHTSA.

AutoGuide.com

 

[rickaren]

Statement: TREAD Reporting

Statement: TREAD Reporting

September 29, 2015 , Auburn Hills, Mich. -

As a result of FCA US LLC’s heightened scrutiny of its regulatory reporting obligations growing out of its recent Consent Order with NHTSA, FCA US identified deficiencies in its TREAD reporting. FCA US promptly notified NHTSA of these issues, and committed to a thorough investigation, to be followed by complete remediation. FCA US is in regular communication with NHTSA about its progress in the investigation. FCA US takes this issue extremely seriously, and will continue to cooperate with NHTSA to resolve this matter and ensure these issues do not re-occur.

 

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Independent Monitor Chosen

Independent Monitor Chosen

October 23, 2015 , Auburn Hills, Mich. -

FCA US LLC today announces the selection of former United States Secretary of Transportation, The Honorable Rodney E. Slater, as independent monitor, consistent with the Consent Order signed with the National Highway Traffic Safety Administration (NHTSA).

The Company reviewed applications from several candidates and identified a group of finalists, each of whom was interviewed. Three monitor nominations, including Secretary Slater's, were forwarded to NHTSA. This was done within the 60-day deadline prescribed in the Consent Order.

NHTSA, in consultation with FCA US, selected Secretary Slater, currently a partner in the Squire Patton Boggs law firm in Washington, D.C.

FCA US looks forward to working with Secretary Slater in fulfilling the Company’s Consent Order commitments.