Honda will pay $70 million for under-reported death claims

January 9, 2015
Honda has agreed to pay $70 million in fines for under-reporting warranty claims and more than 1.700 injuries and deaths that could potentially be related to defects in its vehicles.
“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,” said NHTSA Administrator Dr. Mark Rosekind in a statement. “The actions we are requiring will push Honda to significantly raise the bar on the effectiveness of its EWR reporting program. Our ongoing oversight will ensure compliance and determine if there is cause for additional actions.”

In addition to the fines, Honda will also be subjected to stricter oversight Going forward, Honda will be required to “develop 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,” according to NHTSA. Honda will also be required to submit additional information regarding the under-reported cases to the agency so that regulators can evaluate any potential defects to determine their worthiness for potential recall campaigns.

According to Automotive News, Honda’s violations may have hampered the agency’s ability to identify potential safety issues in its vehicles.

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