NHTSA imposes record $70-million penalty on Honda

NHTSA imposes record $70-million penalty on Honda

The US National Highway Traffic Safety Administration (NHTSA) has imposed a record $70-million penalty – a total of two penalties of $35 million each – on bigwig Japanese automaker Honda Motor Co.

Announcing the fine imposed on Honda, the NHTSA said that the automaker has been penalized for its failure to report driver deaths, injuries and vehicle complaints to the government.

The NHTSA further elaborated that a $35-million fine has been imposed on Honda because it failed to report 1729 death and injury claims to the safety regulator for an 11-year period between 2003 and 2014; while another $35-million fine has been imposed for not reporting warranty claims from customers during the same time period.

With the statutory maximum penalty imposed by the NHTSA for a safety violation by an automaker being $35 million, the two concurrent penalties imposed on Honda together amount to the largest one-time penalty - $70 million - which the safety agency has ever imposed on any automaker.

With regard to the record penalty slapped on Honda, US Transportation Secretary Anthony Foxx said that “Honda and all of the automakers have a safety responsibility they must live up to — no excuses;” and added: “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.”