Japanese automaker Honda pays $ 70 million fine to US after failing to report safety issues

January 9, 2015

Japanese automaker Honda has agreed to pay US 70 million dollars in fines to the US authorities for failing to report safety issues involving its cars.
It was announced by the US regulator National Highway Traffic Safety Administration (NHTSA) after Honda had accepted liability for the breach on safety issues.
As per NHTSA, Honda failed to report more than 1,700 death and injury claims involving its cars between July 2003 and June 2014.
In this regard, Honda will pay two $35 million fines, making it as the largest amount ever paid by any automaker.
Background
Honda was under investigation for violations of NHTSA’s Early Warning Reporting regulations.
As per the NHTSA rules, it is necessary for the automakers to report quickly any information about possible defects, deaths and injuries or damage and warranty claims made by consumers.
But Honda failed to reveal and report 1,729 cases involving deaths or injuries between July 2003 and June 2014 to the NHTSA.
NHTSA earlier had reported that, few incidents of Honda cars involved Takata Corp air bags that had ruptured and had been the subject of massive recalls.
But, Honda attributed this incident to its data entry and computer programming errors. Thus, failing to comply NHTSA rules and regulations. So the fine was imposed by US regulator.