Ferrari hit with $3.5m fine for failing to report manufacturing safety standards

Glen White
- Leadership - Nov 03, 2014

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

The Transportation Recall Enhancement, Accountability, and Documentation Act (TREAD) requires all manufacturers to report potential and actual safety issues, however until recently - until Fiat took over Chrysler - Ferrari wasn’t required to file the early warning report as it was considered a small-volume manufacturer. Even as a small-volume manufacturing company, Ferrari was still required to report any fatal incidents.

The NHTSA says Ferrari failed to report three deaths that occurred in its vehicles in the past three years.

The U.S. Transportation Secretary Anthony Foxx said, “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. The luxury automotive manufacturing company will also need to train its team to understand the requirements.

NHTSA Deputy Administrator David Friedman said, “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 spate of high profile recalls, 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.

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