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NHTSA Fines Ferrari $3.5 Million for Failing to Submit Reports

Motor Trend logo Motor Trend 11/2/2014 Megan Stewart
2015 Ferrari California T With Sunset© Provided by MotorTrend 2015 Ferrari California T With Sunset

The National Highway Traffic Safety Administration (NHTSA) has fined Ferrari a $3.5 million civil penalty for failing to submit the required safety information for its vehicles, and has issued the automaker an order to comply with its oversight requirements.

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The Transportation Recall Enhancement, Accountability, and Documentation Act (TREAD) of 2000 requires all manufacturers to report potential and actual safety issues, and it wasn't until Fiat took over Chrysler that Ferrari was required to file the early warning reports as they were seen as a small- volume manufacturer. However, this didn't excuse the automaker from reporting fatal incidents. The NHTSA says Ferrari failed to report three deaths that occurred in prancing horse vehicles in the past three years.

U.S. Transportation Secretary Anthony Foxx said in a press release that "There is no excuse for failing to follow laws created to keep drivers safe, and our aggressive enforcement action today underscores the point that all automakers will be held accountable if they fail to do their part in our mission to keep Americans safe on the road."

Ferrari will not only have to pay the civil penalty, but will also need to improve its process for submission of early warning reports, and will also need to train its team to understand the requirements. NHTSA Deputy Administrator David Friedman said in the same release that "Early warning reports are like NHTSA's radar, helping us to find unsafe vehicles and make sure they are fixed. Companies that violate the law and fail to comply will be subject to comparable swift NHTSA enforcement action."

Ferrari is the latest automaker to come under NHTSA scrutiny. Following GM's ignition recalls and others, the safety agency has been cracking down on automakers that are late in reporting issues. GM was fined $35 million -- the maximum amount -- for the ignition recalls earlier this year, while Hyundai had to pay $17.35 million in August for not properly carrying out a brake recall.

Source: NHTSA

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