Honda is a Japanese multinational corporation which is famously known for its outstanding and innovative line-up of automobiles and motorcycles. Despite the company’s massive success in the global auto industry, it is still being faced with many challenges up to this point in time.
Honda Motors, like any other company, does not always execute important business transactions and submit required reports on the expected deadline. From time to time, Honda also makes mistakes. One of which is its failure to pass its early warning reports to the NHTSA.
The National Highway Traffic Safety Administration (NHTSA) is a part of the United States’ Department of Transportation. Its main goal is to prevent and reduce the number of vehicle-related accidents in the United States by regulating the safety of all those who use vehicles. According to the NHTSA, Honda was not able to abide to their rules since Honda had failed to submit the warning reports that should have listed the number of deaths and injury claims of the automaker’s customers in the past years. Furthermore, Honda Motor Company, Ltd was not able to report the needed warranty claims and data to the administration.
What most people are not aware of is that all automakers, regardless of their performance and impressive public image or reputation, are obliged to provide potential safety concerns to the United States Government constantly. This is rooted to the law which had been legislated fourteen years ago as a result of the infamous Ford-Firestone dilemma which mainly revolved around the problem on Ford’s tires that remained unnoticed for several years.
Because of its failure to report vehicle-related safety problems for eleven years straight, Honda is being charged $70M by the NHTSA. BBC News confirms that Honda had already admitted its failure to report 1,729 deaths and injuries between the year 2003 and 2014.
Due to this shortcoming of the automaker company, its higher-ups have decided to employ some changes in its internal reporting system. However, they would still have to live up to the consequences of their negligence to their responsibility as an international automaker; therefore, they would have to pay the $35M worth of maximum penalty from not being able to send the reported deaths and injury claims to NHTSA. To add, the company also has to pay its $35M penalty from not being able to attend to the warranty claims of its buyers.
According to Honda North America’s Vice President, Rick Schostek, the issues have already been resolved and the Japanese automaker company is continuously working hand in hand with NHTSA to enhance the internal reporting practices of Honda Motors. According to reports, the problem became bigger than it was when Honda did not take any action until September last year to the notice of underreporting released by the administration in-charge.
Although automakers often face the dilemma of not being able to comply to the set of rules and conditions set by the safety regulating administration of the United States, it cannot be overlooked that the National Highway Traffic Safety Administration is not exempted from an array of criticisms from different government officials for not being able to identify the widespread violations committed by renowned automakers in the world. Most likely, this is the reason why the NHTSA is currently taking its safety regulatory procedure, surveillance and operation in a whole new level.