Honda agrees to pay $70 million fines over regular reporting lapses

Article by Christian A., on January 12, 2015

Honda has reached an agreement to pay $70 million in fines as well as submit to a more stringer oversight for its failure to tell the United States government about warranty claims and over 1,700 injuries and deaths tied to suspected flaws in its vehicles. The law required carmakers to report such matters to the government, particularly the National Highway Traffic Safety Administration.

Honda’s violations may have effectively hindered NHTSA’s ability to quickly identify vehicle defects. In a statement, US Transportation Secretary Anthony Foxx said that all carmakers, including Honda, have a safety responsibility “they must live up to.” He added that the record fines highlight the government’s tough stance against those who violate the law.

The civil penalties covered two separate fines of $35 million, the maximum penalty allowable under US law. One penalty refers to Honda’s failure to report 1,729 death and injury claims to NHTSA between 2003 and 2014. The other penalty refers to lapses on completely reporting warranty claims and repairs offered under “customer satisfaction campaigns.”

Honda’s violations surfaced last year as probes into the Takata airbag recall crisis prompted doubts on the diligence of some carmakers to report all potential product defects to the government.

In a synopsis of an internal review filed with NHTSA in November 2014, Honda said it underreported due to “inadvertent data entry or computer programming errors” that spanned 11 years.

Rick Schostek, Honda North America’s executive vice president, remarked in a recent statement that the carmaker has resolved the matter and will build on the actions Honda has taken to address its past shortcomings in early warning reporting.

If you liked the article, share on:

Topics: honda

Comments

Recommended

Before the W177 goes on sale in 2018, Mercedes-Benz had to go back to the drawing board to check on the A Class’ interior. This is because the new model...
by - November 24, 2017
If you see the Aston Martin’s 2018 Vantage, you would think that it is significantly different from most of Aston’s GT lineup. For instance, if the DB11 is a fine...
by - November 24, 2017
Even as Chevrolet is making a huge splash in the industry with the recent launch of the new Corvette ZR1, there may be trouble brewing. Chevrolet has announced huge discounts...
by - November 24, 2017
The 2018 GMC Sierra 2500HD has arrived this week at the snowy mountains in Colorado for its winter long debut. GMC’s tracked Sierra Mountain Concept will be on display at...
by - November 24, 2017
We’re willing to bet that the Bentley Bentayga is not the first thing that comes to mind for most people who are into off-roading and outdoor activities. It just doesn’t...
by - November 23, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries