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Dealership to pay $125,000 settlement for selling recalled bikes

March 19, 2013
Filed under News

Southern Honda Powersports, in Chattanooga, Tenn., has reached a settlement of $125,000 for selling unrepaired recalled motorcycles.

The dealership admitted to selling 329 motorcycles from 2009-12 that had been recalled but not repaired, violating federal law. The National Highway Traffic Safety Administration began investigating Southern Honda in 2012, when a former employee reported unsafe practices, the Chattanooga Times Free Press reported. No injuries or deaths have occurred as a result of the sale of recalled bikes from the dealership.

The $125,000 is a fraction of the fine Southern Honda could have been faced with. At $6,000 per vehicle, the total fine could have reached nearly $2 million.

To read more from the Chattanooga Times Free Press, click here.

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