Schakowsky Statement on NHTSA's Agreement with Honda

The Motor Company Failed to Report Death, Injuries and Warranty Claims

WASHINGTON, DC –Today, a Consent Decree was announced between the National Highway Transportation Safety Administration (NHTSA) and Honda Motor Company (Honda). The agreement includes two separate $35 million penalties relating to the company’s failure to report deaths, injuries, and certain warranty claims to the federal government in violation of the TREAD Act. The Decree also establishes greater NHTSA oversight and third party audits of Honda to ensure that all required reporting is completed now and into the future. Rep. Jan Schakowsky released the following statement in response:

“I am pleased that NHTSA has acted to penalize Honda for its failure to protect its customers and the public. The Company’s failure to meet disclosure requirements delayed the diagnosis of safety issues in its vehicles that may have led to tragic and senseless deaths.

One glaring issue with this Consent Decree is that it fines Honda only $70 million, and only by finding a way around the $35 million dollar statutory cap. That amount is a pittance for a company valued at more than $50 billion. The multiple violations in this case show that NHTSA also could have issued a more appropriate fine against GM for its deadly ignition switch failures. But we should not force NHTSA to be creative. Penalties must be high enough to change behavior and improve safety – not small enough to be comfortably factored in as a cost of doing business. We must change the law so that companies will be hit with meaningful penalties when they fail to adequately protect their customers and the public.

Last year, I introduced the Vehicle Safety Information Act, legislation to improve auto safety and the efficiency of recalls. That bill would increase fines for failing to comply with NHTSA requirements and eliminate the statutory maximum penalty. It would also clarify the information manufacturers must provide to NHTSA and the public about defects and fatal incidents, as well as provide an Imminent Hazard authority so that NHTSA can expedite recalls of potentially deadly cars. I plan to introduce similar legislation soon, and I believe it should be enacted without delay.

Today’s Consent Decree makes clear that automakers will be held accountable for their wrongdoing. That being said, more work must be done to ensure that NHTSA has all the authority it needs to regulate the auto industry and impose appropriate fines as a penalty and deterrent. I look forward to working with my colleagues on both sides of the aisle to enact those meaningful changes.”