“Holey moley!” That’s what I thought when I read that Honda got hit with a $70 million fine. The Obama administration imposed this history-making fine because the Japanese automaker failed to report to regulators roughly 1,700 complaints about its vehicles, claiming serious injuries and deaths. Moreover, the automaker apparently failed to report warranty claims. The complaints spanned an 11 year period, beginning in 2003.
This past November, Honda admitted that it didn’t report the aforementioned complaints to the National Highway Traffic Safety Administration (NHTSA). When did its executives learn of these omissions? It was in 2011 — three years ago.
Because the company also failed to report customer satisfaction/warranty claims (same 11 year period), NHTSA doubled the $35 million fine. One was for the failure to report the death/injury complaints; the other $35 mil for its failure to report the warranty/customer satisfaction claims. Ouch.
In case you’re wondering, yes – some of the complaints related to the Takata air bags along with other defective parts.