The federal government has fined Honda Motor ‘s U.S. subsidiary $70 million for failing to report more than 1,700 injuries and deaths
linked to potential defects in its vehicles, in its continued crackdown on issues involving vehicle safety.
American Honda will pay two $35 million penalties – the maximum allowed by Congress for underreporting 1,729 death and injury claims to the agency for the past 11 years, and for failing to report certain warranty claims
during the same period. The Japanese carmaker, which has extensive U.S.
operations, also agreed to increased oversight of its safety practices.
Automakers are required to report potential safety concerns to the government under a 14-year-old U.S. law enacted in the wake of the Ford-Firestone tire crisis, when problems with tires on Ford Explorers went unnoticed for years because there was no central database for accident reports. Now there is an “Early Warning System” that requires automakers to
provide quarterly updates on deaths, injuries and warranty claims that could provide evidence of potential defects. The data are
then used to investigate whether further action, including a recall, is necessary.
“Honda and all of the automakers have a safety responsibility they must live up to – no excuses,” said U.S. Transportation Secretary
Anthony Foxx in a statement. “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.”
In 2014, the National Highway Traffic Safety Administration issued more than $126 million in civil penalties, more than the sum of all
fines in its 43-year history.
“Today’s announcement sends a very clear message to the entire industry that manufacturers have responsibility for the complete and timely reporting of this critical
safety information,” said NHTSA
Administrator Dr. Mark Rosekind.
Honda said it has already taken steps to improve shortcomings in its early warning procedures, including better training for workers. In November, Honda completed an
internal audit of its safety reporting
processes, and blamed its underreporting on “inadvertent data entry or computer
programming errors” that spanned 11 years.In a statement, Rick Schostek, executive vice president, Honda North America, Inc., said,
“We have resolved this matter and will move forward to build on the important actions Honda has already taken to address our past
shortcomings in early warning reporting,” said ”We continue to fully cooperate with NHTSA to achieve greater transparency and to
further enhance our reporting practices.” Source: Forbes.com
linked to potential defects in its vehicles, in its continued crackdown on issues involving vehicle safety.
American Honda will pay two $35 million penalties – the maximum allowed by Congress for underreporting 1,729 death and injury claims to the agency for the past 11 years, and for failing to report certain warranty claims
during the same period. The Japanese carmaker, which has extensive U.S.
operations, also agreed to increased oversight of its safety practices.
Automakers are required to report potential safety concerns to the government under a 14-year-old U.S. law enacted in the wake of the Ford-Firestone tire crisis, when problems with tires on Ford Explorers went unnoticed for years because there was no central database for accident reports. Now there is an “Early Warning System” that requires automakers to
provide quarterly updates on deaths, injuries and warranty claims that could provide evidence of potential defects. The data are
then used to investigate whether further action, including a recall, is necessary.
“Honda and all of the automakers have a safety responsibility they must live up to – no excuses,” said U.S. Transportation Secretary
Anthony Foxx in a statement. “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.”
In 2014, the National Highway Traffic Safety Administration issued more than $126 million in civil penalties, more than the sum of all
fines in its 43-year history.
“Today’s announcement sends a very clear message to the entire industry that manufacturers have responsibility for the complete and timely reporting of this critical
safety information,” said NHTSA
Administrator Dr. Mark Rosekind.
Honda said it has already taken steps to improve shortcomings in its early warning procedures, including better training for workers. In November, Honda completed an
internal audit of its safety reporting
processes, and blamed its underreporting on “inadvertent data entry or computer
programming errors” that spanned 11 years.In a statement, Rick Schostek, executive vice president, Honda North America, Inc., said,
“We have resolved this matter and will move forward to build on the important actions Honda has already taken to address our past
shortcomings in early warning reporting,” said ”We continue to fully cooperate with NHTSA to achieve greater transparency and to
further enhance our reporting practices.” Source: Forbes.com
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