Friday, January 09, 2015
A $70 Million Hit To Reputation
Honda Motor Co. has just taken a $70 million hit to its reputation for safety in the form of fines imposed by the Federal government. The fine, actually two separate penalties, comes from a failure to report defects to the government so it could act if recalls were needed. Honda has a reputation for well built vehicles but one must stop and ask questions given the size of the fines. Or, in other words, would you buy a car from a company that has had such a large penalty? It is too early to know whether the fines will affect sales of Honda's autos and vans, but it shouldn't take long to learn. Meanwhile, salesmen are left with the burden of handling questions with no good answers. It is safe to say that Honda will be in compliance in the future. If it isn't, it deserves to go out of business.
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