Honda just got fined a record amount of $70 million for not reporting 1729 death and injury claims as well as warranty claims but the fine seems modest compared to the $1.5 billion operating profit the car company recorded between July and September

Death, injury and warranty claims can serve as an early warning of defects or other problems in a car and manufacturers are required by law to submit this information to the government. For the last 11 years, Honda consistently under reported these claims and was fined $70 million for not doing so (see Honda Fined for Violations of Safety Law).Even though this penalty is the highest amount ever fined a car manufacturer by the federal regulators it still seems very modest in comparison to the revenue of the giant car manufacturers. The Obama administration wants to raise the maximum fine to $300 million but would that be enough?