Honda hit with $70 million in fines for failing to report accidents over 11 years
By Chris Isidore @CNNMoney January 8, 2015: 12:49 PM ET
NEW YORK (CNNMoney)
Honda was hit Thursday with a record $70 million in fines for failing to report accidents and other safety issues over 11 years.
Honda failed to report 1,729 accidents to the National Highway Traffic Safety Administration. The agency said it does not yet know how many deaths are tied to these accidents.
The Japanese automaker had already admitted its failure to file the reports, which it attributed to data and computer programing errors. But regulators said those errors did not excuse Honda from reporting the accident data.
Automakers and safety regulators are both supposed to analyze those reports to determine if there is a vehicle flaw that requires a recall.
This might not be the only penalty that Honda faces due to the lack of reporting.
Transportation Department officials Thursday said they have talked to the Justice Department about the results of their probe.
The Center for Auto Safety, a public interest group, has called for the U.S. to bring criminal charges against Honda.
It's now up to Justice as to whether to pursue a criminal case.
http://money.cnn.com/2015/01/08/news/companies/honda-safety-fine/index.html
I knew this was coming. Things were really weird about the new rash of recalls. Many of these cars were "ok'd" from the [revious recall several years ago.
Honda knowingly swept thjis under the rug, just like GM, but you won't hear the outrage that GM creates because Honda.
It's up to a manufacturer to report accidents to the NHTSA? Well I learned something today. Obvious conflict of interest there, it was only a matter of time...
So having seen Toyota successfully out GM GM, Honda is trying that approach too?
This should be in the off-topic discussion, because all of these CEOs and high ranking management officials should have been arrested and charged with conspiracy to cover up neglect, along with any other crimes they have committed. Because of our corrupt political system, a $70 million fine is a record yet it's an 8oz. cup of money to Honda.
GameboyRMH wrote:
It's up to a manufacturer to report accidents to the NHTSA? Well I learned something today. Obvious conflict of interest there, it was only a matter of time...
I'm curious as to how Honda is supposed to know when I've had an accident
When an airbag, seatbelt are ordered it must be ordered by VIN. That is then logged in so that Honda knows what vehicle has had what replaced and why. I'm sorry, but flying shrapnel in your airbag flying at your face and neck? That's bad.
Heres the regulatory text.
Code of Federal Regulations said:
A report on each incident involving one or more deaths or injuries occurring in the United States that is identified in a claim against and received by the manufacturer or in a notice received by the manufacturer which notice alleges or proves that the death or injury was caused by a possible defect in the manufacturer's vehicle, together with each incident involving one or more deaths occurring in a foreign country that is identified in a claim against and received by the manufacturer involving the manufacturer's vehicle, if that vehicle is identical or substantially similar to a vehicle that the manufacturer has offered for sale in the United States.
Source : http://www.ecfr.gov/cgi-bin/text-idx?SID=c5c11744b21f5a3b38c6b94cbb24ce54&tpl=/ecfrbrowse/Title49/49cfr579_main_02.tpl
The manufacturers get a lot more lawsuits than you would expect!
Deal with this constantly as part of my job. Citizens don't want the heavy handed government employees inspecting and investigating and otherwise interfering with businesses. So the laws/regulations require self-auditing and self-reporting. Which of course many a business does not do. Or at least not very well or accurately. It is a catch-22.
The only tool that gives a corporation incentive to do things right is monetary penalties. You can't imprison a corporation. So you hurt them with monetary penalties, and they've got to be large enough to inspire changes in how the corporation does business.
That's why many of the big businesses I deal with continue polluting or discriminating and other such things. They make more money doing the crime than they lose in penalties. I've had company executives laugh in my face about our penalties. ten million dollars to buy the controls and equipment to do it right, or a thousand dollar fine. They've whipped out their wallets and paid in cash on the spot. If the fine had been 70 million on the other hand, they might have changed their ways.
