Honda Hit with $70 Million Fine by US Department of Transportation

The Japanese car company Honda has been issued the largest fine in the history of the US Department of Transportation.

In a press release, the Department of Transportation said its National Highway Traffic Safety Administration had fined Honda $70 million dollars for failing to notify them of reports of accidents and deaths tied to their products.

Honda failed to file documents called early warning reports which are meant to help the company and regulators identify future or ongoing safety problems.

The $70 million fine is actually two $35 million dollar penalties. The first penalty related to Honda's failure to report 1,729 death and injury claims between 2003 and 2014. The second related to Honda's failure to report specific warranty claims and complaints.

The reporting of such claims is mandatory under federal law. "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."

Honda will also have to ensure that they create policies and safeguards so that it does not fail to issue early warning reports in the future. For example, Honda will have to create an official written policy to ensure compliance with early warning report filing. The company will also need to train personnel to file the reports appropriately at least once a year. Lastly, Honda must hire an outside third party to audit its early warning reporting practices to ensure they are in compliance with US law.