FCA Admits to Under-Reporting Injury and Death Claims

FCA Admits to Under-Reporting Injury and Death Claims

Fiat Chrysler Automobiles (FCA) has admitted to under-reporting injury and death claims. 

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.

SEE ALSO: Here’s How FCA is Going to Fix its Recall Mess

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.

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