Tenn Honda Dealer Fined By NHTSA Over Recalled Vehicles

  • Post category:March 2013

Tenn Honda Dealer Fined by NHTSA Over Recalled Vehicles

The National Highway Traffic Safety Administration has fined a Tenn Honda Dealer for allegedly selling hundreds of recalled motorcycles before they were repaired over a five-year period.


Hundreds of motorcycle owners may be quite surprised that their bikes were not inspected or repaired before purchase, even though they were under federal safety recall when they were bought. According to a statement by the National Highway Traffic Safety Administration, (NHTSA) Southern Honda Powersports, (aka Big Red Powersports LLC) located in Chattanooga, Tennessee has been fined $125,000 for selling 329 new motorcycles between the years of 2007 to 2012 without inspecting or repairing them though they were under recall.

Investigations began last year after a former marketing agent for the Tenn. Honda dealer nine employees reported to regulators that possibly thousands of vehicles were under recall and unrepaired when they were sold between the years of 2004 to 2010. The agent also reported that between 2004 and 2007, up to 25,000 ATVs, dirt bikes and new motorcycles were not safely assembled before sale, and that he believed the misassembled vehicles continued to be sold through 2010, USA Today reports, though those claims were not included in the statement released by the NHTSA.

The owner of the Tenn Honda Dealer told investigators that while “some bikes were delivered” before safety repair work was done, the dealership had notified the buyers of the recall. He also told USA Today last year that safety was a “first priority” for the company and that a sales person had been fired for selling vehicles under recall. Southern Honda Powersports, the largest power sports dealership in the United States issued a statement during the probe stating that the company “always has complied with all applicable regulations issued by NHTSA and the CPSC (Consumer Protection Safety Commission) including those related to product safety defects and the conduct of safety recalls.” (http://www.usatoday.com/story/news/nation/2013/03/15/honda-unsafe-motorcycles-chattanooga-dealership-fined/1991801/)

According to the settlement, the Tenn Honda Dealer agreed to the terms of the settlement while denying that it violated the U.S. Safety Act, which required that any new recalled vehicle is repaired before being sold. The dealership will pay the fine in five equal increments of $25,000 with the last installment to be made no later than February 2017. The NHTSA said in a statement that no deaths or injuries have been reported in association with the recalled bikes.

About Wright & Schulte LLC

Wright & Schulte LLC, a personal injury firm, is dedicated to the belief that America’s legal system should work for the people. Every day, the attorneys of Wright & Schulte LLC stand up for the rights of people who have been injured by the negligence or misconduct of others. Whether it is a personal injury due to a highway accident, medical malpractice, product liability, nursing home abuse, a construction accident, wrongful death, or any other lawsuits we are always here to answer any questions and help in any way we can. It costs nothing to talk to us, so schedule a free initial consultation. There is no obligation. You can have the advice of a respected legal professional. Contact our office at yourohiolegalhelp.com or by phone at (937)-222-7477 to set up your free appointment.

This entry was posted in Wright & Schulte News & Information. Bookmark the permalink.

←Child Safety Restraints Save Lives

Medical Malpractice Claims News: New Study Reveals Billions at the Heart of Surgical Never Events →