Honda Fined $70 Million For Unreported Deaths
Honda will be fined $70 million by the National Highway Traffic Safety Administration (NHTSA) in the largest civil penalty an automaker will have to pay.
The announcement follows an NHTSA investigation that found Honda failed to report deaths, injuries, and certain warranty claims to the government, as per regulations.
“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. “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.’’
In 2014, the NHTSA issued more than $126 million in civil penalties, which according to the NHTSA was more than the total amount of penalties collected for the 43 years the group has been in existence.
Car companies are supposed to submit quarterly reports that explain any safety issues, which the NHTSA uses to look into any potential problems.
Honda failed to report 1,729 death and injury claims between 2003 and 2014, according to the NHTSA.
“Today’s announcement sends a very clear message to the entire industry that manufacturers have responsibility for the complete and timely reporting of this critical safety information,’’ NHTSA Administrator Dr. Mark Rosekind said in a statement.
It also seems that Honda may have been fined more, but there is a $35 million cap for fines. Honda received two, one for the misreporting of injuries and fatalities and one for the failure to report warranty claims.
Overall, 2014 was not the greatest year for the auto industry in general.
The New York Times reported that there were over 62 million vehicles that were recalled for a variety of reasons. The Times reported that one in every five cars on the road today were recalled.
One of the largest recalls of the year also involved Honda along with 9 other manufacturers for faulty Takata airbags, which affected about 7.8 million vehicles.
In the end, $70 million seems like a lot of money, but in the world of corporate fines, it’s merely a penance.
Federal fines for banks have reached into the billions. When JP Morgan was fined in 2013, the settlement with the government was $13 billion. Bank of America settled with the feds for $8.5 billion in 2011.
One major oil company also paid a hefty price. BP faced a $4.5 billion fine for the oil spill in 2012.
Will automobile fines be going up in the future? Possibly.
The GROW AMERICA Act, which is the NHTSA’s four year reauthorization bill, hopes to increase the civil penalty limit from $35 million to $300 million to ensure that manufactures comply with safety standards.
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