As we’ve reported previously, car manufacturers are required to report death and injury claims to the National Highway Traffic Safety Administration so that the agency can identify potentially fatal and dangerous defects. Failing to submit those reports not only endangers drivers, it can cost a pretty penny for auto makers. Just ask Ferrari, the high-end carmaker must pay a $3.5 million penalty for its inaction.

NHTSA announced that Ferrari will pay the hefty fine and revise its reporting procedures as a result of failing to submit early warning reports [EWR] that included three fatalities.

Ferrari, a subsidiary of Chrysler Fiat, admitted that it violated federal law when, for three years, it failed to submit required safety information to the agency.

While Ferrari once qualified as a small volume manufacturer and was not required to file quarterly reports with NHTSA, that status changed when Chrysler was acquired by Fiat in 2011.

Additionally, all car manufacturers are required to submit fatal accidents no matter their volume size.

“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,” Anthony Foxx, U.S. Transportation Secretary, says in a NHTSA statement.

Under the settlement, Ferrari must improve its processes for EWR reporting, to train personnel on the EWR requirements, to communicate these improvements to NHTSA, and to retroactively submit all EWR reports.

NHTSA Fines Ferrari $3.5 Million for Failing to Submit Early Warning Reports [NHTSA]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.