Honda fined over reporting failure
Honda will pay $70 million to settle allegations brought by the US government after the company failed to report over 1,729 death and injury claims to officials between 2003 and 2014.
According to the Corporate Crime reporter the National Highway Traffic Safety Administration (NHTSA) issued the fine after the company agreed it was in breach of the TREAD Act which requires manufacturers to submit comprehensive reports of potential safety concerns.
Honda also agreed to increased NHTSA oversight and third party audits to ensure that all required reporting is completed now and into the future.
Campaigners are now calling on the US Justice Department to open a criminal investigation into the case.
NHTSA’s investigation into Honda’s safety reporting found that the car maker failed to submit early warning reports (EWR reports) identifying potential or actual safety issues and that the manufacturer failed to report certain warranty claims and claims under customer satisfaction campaigns throughout.
The data are then used to investigate whether safety defects or defect trends exist and warrant further action, including possible recalls.
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.
Honda has also been ordered to comply with NHTSA oversight requirements whereby Honda must develop a 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.
The consent order also requires Honda to provide NHTSA’s Early Warning Division with information regarding the 1,729 unreported death and injury incidents and the warranty claims, so that the agency can analyse these incidents for potential safety concerns and take appropriate action to protect the public.
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