RECORD FINE
U.S. safety agency slaps Honda with $70M in penalties over under-reported injury claims,
WASHINGTON— Honda Motor Co. agreed to pay a record $70 million (U.S.) in fines and submit to stricter oversight for failing to tell the U.S. government about warranty claims and more than 1,700 injuries and deaths linked to potential defects in its cars.
Automakers are required to report such information under a 14-yearold U.S. law and Honda’s violations may have hampered the National Highway Traffic Safety Administration’s ability to quickly identify vehicle flaws.
“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 Thursday. “These fines reflect the tough stance we will take against those who violate the law.”
Honda’s violations came to light late last year as investigations into a global crisis over defective airbags cast doubt on the diligence of some automakers to tell the government about all potential product defects. In a synopsis of an internal review filed with NHTSA in November, the Tokyo-based automaker blamed its under-reporting on “inadvertent data entry or computer programming errors” that spanned 11 years.
The civil penalties levied Thursday include two separate fines of $35 million, each the maximum allowable under U.S. law. One covers Honda’s failure to report 1,729 death and injury claims to NHTSA from 2003 to 2014.
The second fine covers lapses on completely reporting warranty claims and repairs offered under “customer satisfaction campaigns.”
The combined penalty exceeds NHTSA’s previous record for a compliance violation by a single company, the $35 million imposed on General Motors in May for mishandling the response to an ignition-switch defect.
NHTSA issued more fines in 2014 than at any time in its history — $126 million — showing it is taking a tougher stand on enforcement that is expected to continue, according to the regulator.
The Honda agreement was signed just before the year ended and announced Thursday.
As part of that consent order, Hon- da will revise its regulatory compliance practices, improve personnel training and complete two outside audits on its data reporting, according to the U.S. statement.
The number of injury-claim omissions Honda admitted to exceeded the 1,144 reports Honda filed over the 11-year period and in some cases involved the company not sharing with NHTSA information from police reports.
Eight of Honda’s missing reports — spanning from July 1, 2003, to June 30, 2014 — involved Takata Corp. airbag-inflator ruptures, and NHTSA knew of those incidents, the company said in November.
Honda president Takanobu Ito said then the automaker didn’t share the same understanding as authorities of its obligations under U.S. law. He said local management made many mistakes filing early-warning reports, which NHTSA relies on to help spot potential defects.
Honda said in October it had asked for a third-party audit of potential inaccuracies in its reports to NHTSA.
The company decided in September to include verbal claims from owners or their representatives to make its reporting more consistent with other automakers, it said at the time.
Honda has said it has provided NHTSA detailed information relating to all known ruptures of Takata airbag inflators.