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Honda Cars fined record $70m for covering up 1729 death, injury claims

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Finding this out, the National Highway Traffic Safety Administration (NHTSA) fined Honda $70 million, which must be paid to the U.S. Department of Transport. This is by far the largest civil penalty ever levied on an automaker.

Honda-Cars-penalized-70-million-dollars
Honda Canada is set to replace faulty Takata airbags on 700,000 cars
Of the $70 million fine, $35 million is for failing to report 1,729 death and injury claims between 2003 and 2014 to the NHTSA, and the remaining $35 million is for failing to report warranty and customer satisfaction claims to the NHTSA over the same 11 years period.

Honda is also required to create written procedures and a training program to ensure compliance of NHTSA requirements in the future.

Among the number of complaints Honda should’ve reported were injuries and customer claims pertaining to airbags manufactured by Takata Corp. The airbags were susceptible to deterioration under humid conditions. The damaged airbags were injuring occupants with shards of metal (talk about irony). Other complaints were related to seat belts, unintended acceleration & brakes (all life endangering).

Now, Honda has started a recall campaign to fix Takata airbags in cars distributed all across North America. The Japanese automaker has also started reviewing its claims procedure.

Via – CBC News