The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) has fined Honda $70 million for unreported safety issues.
NHTSA said that Honda failed to submit early warning reports (EWR) regarding safety issues. With this, Honda was slapped with two civil penalties amounting to USD 35 million each. The first civil penalty involves Honda's failure to report 1,729 death and injury claims to the NHTSA between 2003 and 2004. The second was due to the Japanese automaker's unreported warranty claims and claims under “customer satisfaction campaings” during the same time period.
U.S. federal law requires automakers to submit comprehensive EWR reports of “potential safety concerns” to the NHSTA. These report includes production information; incidents involving a death or injury; aggregate data on property damage claims, consumer complaints, warranty claims; and field reports.
According to the NHTSA, this specific case shows how serious they are in emphasizing the responsibility of all automakers.
"Honda and all of the automakers have a safety responsibility they must live up to – no excuses,” said U.S. Transportaion Secretary Anthony Foxx.
In a statement, Honda North America Executive Vice President Rick Schostek said that the company will move forward to take on necessary actions to address their shortcomings. Schostek added that Honda is cooperating with the NHTSA to fix the said issue.