Honda Motor has been fined $70 million by the National Highway Traffic Safety Administration(NHTSA) after the company failed to submit reports of fatal accidents and injuries to the government. This is the largest fine ever levied by the NHTSA.
The penalty came about after it was revealed that Honda failed to report over 1,700 deaths and injuries in which their vehicles were the cause over the past 11 years.
“Today’s announcement sends a very clear message to the entire industry that manufacturers have responsibility for the complete and timely reporting of critical safety information,” said Mark Rosekind, head of the NHTSA, in a statement. “Our ongoing oversite will ensure compliance and determine if there is cause for additional actions.”
The Washington Post reports that the automaker has already agreed to pay the fine.
The $70 million fine is actually a combination of two separate fines. One is the maximum civil penalty of $35 million for failing to report injuries and deaths. This fine is calculated at $7,000 per day of the violation, a number totaling much more than $35 million. The second fine is a $35 million fine for not reporting warranty claims.
A Honda employee identified the problem in 2011 and in 2012 federal regulators notified Honda of potential underreporting issues. However, the automaker took no action until September of 2014, when they commissioned an independent audit. The audit found that the automaker had not reported 1,729 written claims or notices of deaths or injury from 2003 to 2014, the New York Times reported.
The total number of claims that should have been reported is triple the 900 claims the company actually reported. Honda blamed the underreporting on “inadvertent” data entry and computer error, according to the Washington Post.
“We have resolved this matter and will move forward to build on the important actions Honda has already taken to address our past shortcomings in early warning reporting,” said Rick Schostek, Honda’s executive vice president, in a statement. “We continue to fully cooperate with NHTSA to achieve greater transparancy and to futher enhance our reporting practices.”
All automakers are required to report incidents of death or injury since the 2000 congressional mandate made it mandatory to report “early warning” information. Honda contends that their interpretation of the law led them to disregard third party reports.
Anthony Foxx, the secretary of transportation, said their ignorance of the law is not an excuse.
“Good intentions don’t help the automaker,” said Foxx.
He went on to say “Honda and all of the automakers have a responsibility they must live up to — no excuses. 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.”
The NHTSA has alerted the justice department to Honda’s violations and they will decide if a criminal investigation is necessary.
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