U.S. Fines Honda Record $70 Mln For Violating TREAD Act

(RTTNews) - Japanese automaker Honda Motor Co., Ltd. (HMC) has agreed to pay a record $70 million in fines for failing to report deaths, injuries, and certain warranty claims to the U.S. government in violation of the TREAD Act, the U.S. Department of Transportation's National Highway Traffic Safety Administration said Thursday.

The civil penalties include two separate fines of $35 million, the maximum allowed under U.S. laws. While one is for Honda's failure to report 1,729 death and injury claims to the National Highway Traffic Safety Administration between 2003 and 2014, the second is for its failure to report certain warranty claims and claims under customer satisfaction campaigns throughout the same time period.

The fines are the most since General Motors Co. (GM) agreed in May last year to pay a fine of $35 million for the delay in recalling vehicles that had ignition switch defect.

Apart from the civil penalties, Honda has also agreed to increased NHTSA oversight and third party audits to ensure that all required reporting is completed now and into the future.

"Honda and all of the automakers have a safety responsibility they must live up to - no excuses," said U.S. Transportation Secretary Anthony Foxx. "Last year alone, we issued more fines than in NHTSA's entire history. These fines reflect the tough stance we will take against those who violate the law and fail to do their part in the mission to keep Americans safe on the road."

The National Highway Traffic Safety Administration noted that it issued more than $126 million in civil penalties in 2014 alone, which is more than the total amount collected by the agency during its 43 year history.