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Honda to Pay Record $70 Million In Fines to NHTSA For Underreporting Accidents | DrivingSales News

Honda to Pay Record $70 Million In Fines to NHTSA For Underreporting Accidents

January 8, 2015 0 Comments

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Honda has agreed to pay a record penalty $70 million dollars in civil penalties to the NHTSA for underreporting serious injury and fatality accidents and other claims. This is double the fine incurred by GM for their failing to issue recalls in a “timely manner” just last year. The fine is a combination of two $35 million dollar civil penalties. The first penalty is aimed at Honda’s failure to report 1,729 death and injury claims between 2003 and 2014. The second civil penalty is due to Honda underreporting warranty and customer satisfaction claims during that same 03′ to 14′ period.

In a press release from the National Highway Traffic Safety Administration, Transportation Secretary Anthony Foxx addresses this issue. Fox explained, “Honda and all of the automakers have a safety responsibility they must live up to – no excuses. Last year alone, we issued more fines than in NHTSA’s entire history. These fines reflect the tough stance we will take against those who violate the law and fail to do their part in the mission to keep Americans safe on the road.”

We reported previously that Honda reported many less serious injury and death accidents than other automakers. Reports from the NHTSA indicate that they didn’t properly report about accidents and potential vehicle safety concerns in early warning reports. The automaker is required to submit these quarterly reports to help identify safety concerns that may require a recall or closer examination. For example, Bloomberg reported that GM submitted 102 death and injury reports per 100,000 vehicles sold through November of 2014. During that same time period, Honda submitted just 2.4. In a NHTSA press release, Honda is required to take other steps outside of simply paying the two large fines. The release indicates that Honda must, “…develop written procedures for compliance with EWR requirements, train appropriate personnel on at least an annual basis, and complete two third-party audits of the automaker’s compliance with its reporting obligations.”

Including this latest fine to Honda, the NHTSA levied $126 million in penalties from at least six automakers in 2014. What do you think of the large fine against Honda? Is the NHTSA doing their duty to protect the public or is it excessive? Do you think this fine will serve as a wake up call for automakers, or do you think other large civil penalties will be headed their way in 2015?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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