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Multi-layered, high-density polyethylene (HDPE) fuel tanks are increasingly being used in automobiles due to advantages such as shape flexibility, low weight and corrosion resistance. Though, HDPE fuel tanks are perceived to be safer as compared to metallic tanks, the material properties are influenced by service temperature. At higher temperatures (more than 80oC), plastic fuel tanks can soften, sag and eventually spill out the fuel, while the extreme cold (less than -20°C) can lead to potential cracking problems. Damage may also occur due to accidental drop while handling or due to an impact from a flying shrapnel. This can be catastrophic due to flammability of the fuel. The objective of this work is to characterize and develop a failure model for the plastic fuel tank material to simulate damage and enhance predictive capability of CAE for chassis and safety load cases.