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.

Honda-Dealer-Fined-For-Selling-Recalled-Bikes-Your-Ohio-Legal-HelpHundreds 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.

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