NHTSA Fined Ferrari $3.5 Million for Failure of Submitting a Required Report
Ferrari has been a maverick in the auto industry since fast cars were introduced. But speeding over safety precautions has warranted a $3.5 million ticket by the National Highway Traffic Safety Administration (NHTSA) for neglecting safety precautions for its vehicles.
According to the Transportation Recall Enhancement, Accountability, and Documentation Act (TREAD) of 2000, all auto manufacturers must report possible and factual safety issues. Ferrari was an exception to the rule due to their small manufacturing volume. However, things changed when Fiat closed the deal and saved Chrysler back in January 2014. As a result, Ferrari is now required to file early cautionary reports.
When Ferrari failed to report three fatal incidents in the past three years, the NHTSA had to put a halt to the negligent casualties. According to Anthony Foxx, the U.S. Transportation Secretary, “There is no excuse for failing to follow laws created to keep drivers safe, and our aggressive enforcement action 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.”
Due to the new law for Ferrari, they will have to improve internal processes for submitting timely warning reports and train team members to understand and implement requirements.
Ferrari is not alone in not following proper procedures. Hyundai and GM came under NHTSA scrutiny earlier this year for not properly executing recalls. Hyundai paid $17.35 million for disregarding protocol in August for a brake recall. The maximum fine was given to GM ($35 million) because of a late report on an ignition recall. It is clear that the NHTSA is not going to stop until they are sure every car manufacturer is complying with their rules and regulations.
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