Fiat Chrysler told NHTSA earlier this year it had problems with its software for extracting information from a company database to submit to NHTSA, and as a result significantly under-reported death and injury claims. There is no indication that Fiat Chrysler intentionally hid the reports and no suggestion that NHTSA failed to discover safety defects because of the missing reports.
Fiat Chrysler said in September "it takes this issue extremely seriously, and will continue to cooperate with NHTSA to resolve this matter and ensure these issues do not re-occur."
NHTSA and Fiat Chrysler declined to comment on Wednesday. The sources asked not to be identified because the settlement had yet to be made public.
The early warning reports are required under the 2000 law passed by Congress after more than 270 people were killed in rollover crashes in Ford Explorers with faulty tires. The law is aimed at helping regulators spot safety defect trends earlier.
In July, Fiat Chrysler agreed to a three-year consent decree it signed as part of the $105 million settlement into its prior recalls. In October, NHTSA named former Transportation Secretary Rodney Slater to monitor Fiat Chrysler's compliance.
Fiat Chrysler has recalled about 11 million vehicles this year in the United States in 38 campaigns — the most of any automaker — an all-time record.
It has faced scrutiny on a number of auto safety issues, including its recall of 1.4 million vehicles for hacking concerns after two cyber-security researchers used the Internet to remotely turn off a Jeep's engine as it drove. The automaker also faced scrutiny over fire risks in older Jeep SUVs.
Slater is likely to review the company's early warning reporting as part of his oversight. Fiat Chrysler is required to conduct sweeping training and safety reforms and must hold regular meetings with NHTSA.