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Fiat Chrysler reveals problems with US reserve reporting

WASHINGTON, Sept 29 Two months after receiving a
record $105 million excellent for lapses in U.S. automobile reserve recalls,
Fiat Chrysler Automobiles NV on Tuesday revealed
problems with reserve information that could lead to additional
financial penalties for a Italian-U.S. automaker.

Fiat Chrysler pronounced it was questioning discrepancies in
early warning reports that sovereign law requires automakers to
provide to a National Highway Traffic Safety Administration,
the sovereign automobile reserve watchdog. The reports embody information that
could brand reserve defects and eventually lead to product

The automaker did not elaborate or brand a vehicles
involved. Regulators pronounced a discrepancies included
under-reporting of auto-related genocide and damage claims.

“This represents a poignant disaster to accommodate a
manufacturer’s reserve responsibilities,” NHTSA Administrator
Mark Rosekind pronounced in a statement.

In July, NHTSA and Fiat Chrysler announced an agreement
intended to finish years of row over lapses in the
automaker’s opening on reserve recalls covering millions of
vehicles. The understanding compulsory Fiat Chrysler to make a $70 million
cash payment, spend $20 million to urge a remember process
and compensate an additional $15 million if a automaker committed
further violations.

Fiat Chrysler could be compulsory to compensate a deferred $15
million sum if regulators find that a early warning report
problem amounts to a new defilement of sovereign law, NHTSA said.

“Preliminary information suggests that this under-reporting
is a outcome of a series of problems” with Fiat Chrysler’s
early warning news systems, he said. “NHTSA will take
appropriate movement after entertainment additional information on the
scope and causes of this failure,” he added.

Fiat Chrysler pronounced it was in unchanging communication with
NHTSA about a swell of a review and “takes this
issue intensely seriously, and will continue to concur with
NHTSA to solve this matter and safeguard these issues do not

(Reporting by David Morgan; Editing by David Gregorio)

Article source: http://www.reuters.com/article/2015/09/29/usa-autos-fiatchrysler-idUSL1N11Z23F20150929