The civil penalties today include two separate fines of $35 million, each the maximum allowable under U.S. law. One covers Honda’s failure to report 1,729 death and injury claims to NHTSA from 2003 to 2014. The second fine covers lapses on completely reporting warranty claims and repairs offered under “customer satisfaction campaigns.”
The combined penalty exceeds NHTSA’s previous record for a compliance violation by a single company, the $35 million imposed on General Motors in May for mishandling the response to an ignition-switch defect.
NHTSA issued more fines in 2014 than at any time in its history -- $126 million -- showing it is taking a tougher stand on enforcement that is expected to continue, according to the regulator. The Honda agreement was signed just before the year ended and announced today.
As part of that consent order, Honda will revise its regulatory compliance practices, improve personnel training and complete two outside audits on its data reporting, according to the U.S. statement.
The number of injury-claim omissions Honda admitted to exceeded the 1,144 reports Honda filed over the 11-year period and in some cases involved the company not sharing with NHTSA information from police reports.
Eight of Honda’s missing reports -- spanning from July 1, 2003, to June 30, 2014 -- involved Takata Corp. airbag inflator ruptures, and NHTSA knew of those incidents, the company said in November.
Honda President Takanobu Ito said then the automaker didn’t share the same understanding as authorities of its obligations under U.S. law. He said local management made many mistakes filing early-warning reports, which NHTSA relies on to help spot potential defects.
Honda said in October it had asked for a third-party audit of potential inaccuracies in its reports to NHTSA. The company decided in September to include verbal claims from owners or their representatives to make its reporting more consistent with other automakers, it said at the time.
Honda has said it has provided NHTSA detailed information relating to all known ruptures of Takata airbag inflators.
Automakers face fines of $7,000 per violation per day for not abiding by the Transportation Recall Enhancement, Accountability and Documentation Act, which requires the companies to tell regulators about customer injuries, lawsuits, warranty claims and complaints. The maximum civil penalty is capped by Congress at $35 million.
GM, eager to demonstrate proactivity in the wake of the biggest recall in its history, disclosed 102 death and injury reports per 100,000 vehicles sold in 2014 through November. By contrast, Honda disclosed 2.4 reports per 100,000 vehicles sold over the same period.
The Center for Auto Safety, a research group that has been tracking recalls and defects since it was founded in 1970, asked transportation regulators in October to refer Honda to the Justice Department for a criminal investigation.
It cited a 2009 fatality and an August 2013 incident resulting in serious injury that weren’t included in Honda’s Early Warning Reports.