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DOT Fines Honda $70 Million for Reporting Failures

“The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA) announced today that as a result of a NHTSA investigation, Honda will pay two $35 million civil penalties, for a total of $70 million, for failing to report deaths, injuries, and certain warranty claims to the federal government in violation of the TREAD Act.  In the Consent Order, finalized just before the new year, Honda also agreed to increased NHTSA oversight and third party audits to ensure that all required reporting is completed now and into the future.  In 2014 alone, NHTSA issued more than $126 million in civil penalties, exceeding the total amount collected by the agency during its forty-three year history.   Honda and all of the automakers have a safety responsibility they must live up to – no excuses,” said U.S. Transportation Secretary Anthony Foxx. “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’s investigation into Honda’s safety reporting found that the automaker failed to submit early warning reports (EWR reports) identifying potential or actual safety issues.  The first civil penalty is a result of Honda’s failure to report 1,729 death and injury claims to NHTSA between 2003 and 2014. The second civil penalty is due to the manufacturer’s failure to report certain warranty claims and claims under customer satisfaction campaigns throughout the same time period. Additional details are available in the audit report prepared for Honda by Bowman and Brooke and in Honda’s Response to NHTSA’s Special Order addressing the violations. Federal law requires manufacturers to submit comprehensive EWR reports of potential safety concerns to the Department. These quarterly reports include production information; incidents involving a death or injury; aggregate data on property damage claims, consumer complaints, warranty claims, and field reports; and, copies of field reports involving specified vehicle components, a fire, or a rollover.  The data are then used to investigate whether safety defects or defect trends exist and warrant further action, including possible recalls.”

 

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