Honda Death and Injury Scandal leads to $70 Million Fine

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     On January 8, 2015, the National Highway Traffic Safety Administration released a report confirming that between 2003 and 2014, Honda failed to report 1729 death and injury claims to the NHTSA. In response to this, a fine of $35 million was levied on the company, along with an additional fine of $35 million for Honda's failure to report warranty and customer satisfaction claims over the same period.
     Among the incidents that Honda failed to report were accidents involving airbags made by Takata Corp in Japan. The airbags have been found to deteriorate under humid conditions. Additionally, customer complaints about seatbelts, unintended acceleration, and braking were all uncovered in the investigation.
     Honda is one of several companies which faces fines from the NHTSA this year, bringing light to the widespread secrecy and withholding of information that occurs on a regular basis. General Motors, for example, received a $35 million fine for failing to report a faulty ignition switch in their cars, while Hyundai received a $17.3 million fine for issuing what was deemed to be a late recall. These cases, and others, contribute to the $124 million in fines that the NHTSA has levied in 2014, more than it has ever issued in its existence.
     While this increase in consequences clearly displays a commitment to safety and honest business, it is interesting to see whether these fines will have any effect on the way automobile companies do business in the future. Perhaps the money and time saved by not reporting incidents, or issuing recalls outweighs the fines of the NHTSA, and more stringent punishments will have to be put into effect. It is the hope of the author that the fines will have their intended eff
ects, and that a cooperative relationship can be established between companies and their governing bodies, for the safety of consumers around the world.

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