NHTSA Issues Honda $70 Million Fine for Failure to Report Safety InformationJanuary 20th, 2015 by 1-800-THE-LAW2
The National Highway Traffic Safety Administration (NHTSA) has issued $129 million worth of fines in civil penalties to motor vehicle manufactures who did not submit proper early warning reports (EWR reports). The EWR reports should include incidents of death, injury, consumer complaints, warranty claims, field reports, and property damage claims.
Record Breaking Honda Fine
Honda faces the largest fine, $70 million, for failure to report 1,729 deaths and injury claims, as well as warranty claims. Along with paying the fine, Honda has agreed to have licensed monitoring by the NHTSA in the future, and to comply with the NHTSA oversight requirements under a Consent Order. The Consent Order requires Honda to “develop written procedures for compliance with EWR requirements, train appropriate personnel on at least an annual bases, and complete two third-party audits of the automaker’s compliance with its reporting obligations”.
Civil Penalties from the NHTSA in 2014
In 2014, the NHTSA issued 9 civil penalties to 8 different automotive manufacturers including: Honda, Gwinnett Place Nissan, Ferrari S.p.A and Ferrari North America, Chapman Chevrolet LLC, Hyundai Motor America, General Motors Company, Prevost, and Southern Honda Powersports. The total amount of the fines was the highest the NHTSA has given over the course of one year. Among the issued citations were penalties for: failure to submit EWR reports, perform recalls prior to sale and delivery, issue recall in a timely manner, and fully respond to Special Order by due date.
What do these fines mean? These fines are pushing manufactures to raise the bar on their reporting and improve the safety of consumers.
“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 administration”. – NHTSA Administrator Dr. Mark Rosekind
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- National Highway Traffic Safety Administration. U.S. Department of Transportation Fines Honda $70 Million for Failing to Comply with Laws That Safeguard the Public. Retrieved January 13, 2014.