Honda action signals NHTSA emphasis on beefed-up oversight

Posted on 1/10/2015 4:02:07 PM

Additional federal review of business processes is becoming a National Highway Traffic Safety Administration's arsenal to stop an important part of car manufacturers who violate US auto safety regulations.

With $ 70 million in fines, to impose American Honda, on Thursday the agency also hit a Honda to a consent order requiring the company to review under federal law, the agency is how dangerous accident report information disclosure, as well as two-thirds of these changes audit.

Mark Rosekind, newly diagnosed NHTSA administrator, said double-barreled action reflects the agency's determination to punish violations and led them to the reform process.

"This is so important, it is not only to punish past behavior," Rosekind told Automotive News on Thursday night. "What really matters is secure future."

Since taking office Dec. 22, Rosekind noted that the agency is willing to be more direct contact with the car, ending security issues. Under penalty Honda, ended in late December, the third time in 2014 the National Highway Traffic Safety Administration Auto Safety largest economic sanctions combined with strict regulatory agencies related to the case law, following the release of the Hyundai and General Motors consent order.

Since last May, General Motors has been widely federal supervision for three years, as part of its agreement to wait too long to recall 2.6 million cars with defective ignition switch failures go unreported part of more than a decade mainly due to lack of communication. He also was fined $ 35 million.

GM Audit

In the ensuing months, as a result of an internal investigation highlight the failure, General Motors is committed to reform their internal security processes, engineers and lawyers found that regular meetings between the monthly trend defects, researchers tripled the number of defects, to create a the implementation of a new global security, encourage employees to discuss security issues.

In August this year, Hyundai agreed to pay $ 17,350,000, the maximum applicable to violations of their time, and are subject to civil penalties, to more government regulation, because it improves the defect notification procedure. The case involving the brakes failed to properly notify the owner of the Hyundai Genesis sedan defects.

Rosekind said the latest action plan for Honda to address how the company reported an accident involving death or personal injury claims - the so-called Early Warning Report - The National Highway Traffic Safety Administration after the audit found no systemic problems lead Honda 2003-2014 Report 1700 such complaints.

Under the agreement, Honda must be written in late February handle casualties and subject to approval by the NHTSA claims that the new program. Honda also be detailed next year due to NHTSA bimonthly reports for the application of these procedures, and publish reports. Honda staff responsible for early warning reports should be retrained, and Honda do two third-party audit report warning next year, once the changes.

Rosekind said Honda agreed to make the agency plans to take a high-profile assault, a way of the future of the "bright spot."

"We will have NHTSA line under the case for action" Rosekind said.

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