NHTSA To Probe Honda For Possible TREAD Act Failures

(RTTNews) - The National Highway Traffic Safety Administration, or NHTSA, said it has received information indicating that Honda Motor Co., Ltd.'s (HMC) American Honda Motor Co. failed to report incidents involving Takata airbags, which resulted in a death or injury, and for which claims were asserted against Honda.

According to the regulator, the TREAD Act requires that all manufacturers of 5,000 or more light vehicles submit to NHTSA, on a quarterly basis, Early Warning Reports or EWRs that include information on each and every incident involving death or injury, identified in a claim against the manufacturer or a notice received by the manufacturer alleging or proving that the death or injury was caused by a possible defect.

Manufacturers must submit EWRs to NHTSA no later than 60 days after the last day of each calendar quarter.

NHTSA is also concerned that Honda's reporting failures go beyond these Takata incidents. The agency has received information from Honda indicating that the Japanese automaker may have failed to meet its TREAD reporting obligations, including reporting other death or injury incidents.

This audit query or AQ investigation is being opened to probe the extent and scope of Honda's reporting failures, as well as the reasons for such failures and the steps being taken by the firm to assure full compliance with TREAD reporting requirements.

Honda added 2.6 percent in Tokyo trading to 3,570.50 yen.