U.S. Closes Probe Into Honda's Failure to Report Deaths, Injuries
April 25 2016 - 12:00PM
Dow Jones News
DETROIT—The U.S. government has closed an investigation into
Honda's failure to report deaths and injuries, saying that the
company has met all of its obligations.
The National Highway Traffic Safety Administration said in
documents posted on its website Monday that Honda paid a $70
million fine and took steps needed to make sure similar failures
don't happen again.
The government fined Honda in December 2014 in what then was the
largest civil penalty levied against an auto maker.
The company admitted in a consent order that it didn't report
1,729 complaints that its vehicles caused deaths and injuries, and
that it didn't report warranty claims. Many of the deaths and
injuries were related to air bag inflaters made by Takata Corp.
The Japanese auto maker acknowledged in November 2014 that it
failed to make legally required reports during an 11-year period
beginning in 2003. The company admitted it learned of the omissions
in 2011 but waited three years to take action.
Honda also failed to report certain warranty claims and claims
under customer satisfaction campaigns throughout the same period,
federal officials said.
Honda agreed to pay the fines under a consent order it signed
with the traffic safety administration on Dec. 29, 2014.
Federal law requires auto makers to submit death and injury
complaints to regulators as part of an "early warning" system for
identifying potential safety defects that can lead to a recall.
The safety agency said in documents closing the investigation
that Honda completed its performance obligations that were spelled
out in the consent order from Dec. 29, 2014. The auto maker had to
develop written procedures for reporting deaths and injuries and
had to train its personnel on early warning reporting requirements.
It also had an outside party audit its procedures.
(END) Dow Jones Newswires
April 25, 2016 11:45 ET (15:45 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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