Triumph to face $2.9m fines in US

The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) has imposed a $2.9 million civil penalty against Triumph Motorcycles Ltd. and Triumph Motorcycles (America) Ltd. for violations of Safety Act reporting requirements and failure to fully respond to communications from NHTSA.

"Manufacturers must comply with their reporting obligations. The law requires it, and public safety demands it," said U.S. Transportation Secretary Anthony Foxx. "When companies fail to meet those obligations, we will hold them accountable."

The penalty stems from Triumph's September 2014 recall of more than 1300 motorcycles for a defect that could reduce steering capability and increase the risk of a crash. In April, NHTSA began an investigation into whether Triumph had violated the requirement to report the defect in a timely manner, and into other potential violations, including failure to submit quarterly reports on recall completion rates; failure to supply copies of technical service bulletins; and failure to file early-warning data reports on death and injury claims, warranty data and other information.

Under a consent order issued to Triumph, the company must pay a $1.4 million cash penalty and must spend at least $500,000 meeting a series of requirements to improve its safety practices. An additional $1 million in penalties could become due if the company violates the consent order or if additional Safety Act violations emerge.

The consent order requires Triumph to hire an independent consultant to audit the company's safety practices; establish a compliance officer position with direct access to the company's board and senior executives; and submit written plans for compliance practices and employee training for NHTSA's approval.