Feds Fine Honda $70 Million for Safety Reporting Violations

January 13, 2015

3 min to read

DETROIT – The U.S. Department of Transportation's National Highway Traffic Safety Administration announced Thursday Honda Motor Co. has agreed to pay $70 million for failing to report deaths, injuries and certain warranty claims to the federal government, reported MLive.

NHTSA said the Japanese automaker was in violation of the Transportation Recall Enhancement, Accountability and Documentation Act. Signed into law in 2000, the TREAD Act in part requires auto companies to report any defects, death or injuries related to their products.

The fine includes two separate, $35 million civil penalties. NHTSA said an investigation of the Japanese automaker found that it failed to submit early warning reports, which identify potential safety issues. The federal regulator said Honda did not report 1,729 death and injury claims between 2003 and 2013.

In addition to the fines, NHTSA is requiring Honda to develop written procedures for complying with requirements for early warning reports, as well as to train its relevant personnel on this front on an annual basis.

In 2014, NHTSA levied a record $126 million in civil penalties. It was more than the agency had collected over the course of its entire, 43-year history.

"Honda and all of the automakers have a safety responsibility they must live up to – no excuses," U.S. Transportation Secretary Anthony Foxx said 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."

NHTSA said its total fines in 2014 break down as follows:

Honda, $70,000,000, for failing to both submit early warning reports and warranty claims.
Gwinnett Place Nissan, $110,000, for failing to perform recall remedy in new motor vehicles prior to sale and delivery.
Ferrari S.p.A. and Ferrari North America, Inc, $3,500,000, for failing to submit early warning reports.
Chapman Chevrolet LLC, $50,000, for failing to perform recall remedy in new motor vehicles prior to sale and delivery.
Hyundai Motor America, $17,350,000, for the failure to issue a recall in a timely manner.
General Motors Company, $35,000,000, for the failure to issue a recall in a timely manner.
General Motors Company, $441,000, for failing to fully respond to Special Order by due date.
Prevost, a division of Volvo Group Canada, Inc; Volvo Industrial de Mexico S.A. de C.V.; and Prevost Car (US) Inc., $250,000, the second of six annual installments of a total of $1.5 million in civil penalties, for untimely recalls and untimely submission of early warning reports, and technical service bulletins (TSBs).
Southern Honda Powersports (a/k/a Big Red Powersports LLC), $25,000, the second of five annual installments of a total of $125, 000 in civil penalties, for the sale of unrepaired, recalled vehicles.