Tuesday, November 25, 2014

Honda Admits Underreporting US Death, Injury Claims Since 2003

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Due to its narrow interpretation of the TREAD Act, Honda admitted to underreporting the number of claims linked to injuries and/or deaths caused by safety issues in its products since 2003.

Automotive News reports 1,729 claims — including eight related to the Takata airbag recall crisis — went unreported thanks to a combination of said interpretation and data entry and computer programming errors when a report was made.

The admission of guilt comes from a third-party investigation's findings in September of this year, conducted after the Center for Auto Safety accused Honda of failing to report two Takata-related incidences of death and/or injury. The results were handed over to the National Highway Traffic Safety Administration in compliance with a special order regarding the lapse.

Honda is already making adjustments to its reporting system, adding oral and written claims to the standard reports, and will make changes to its organization methods and staffing. In the meantime, the automaker will likely face a fine of $35 million, as well as a $7,000/day fine for every day it was in violation of the TREAD Act since 2003, a fine that could exceed the NHTSA's maximum.

The post Honda Admits Underreporting US Death, Injury Claims Since 2003 appeared first on The Truth About Cars.



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