U.S. Congress to Prepare Sweeping Legislation That Would Reshape Auto Safety Regulations and Significantly Boost Potential Fines against Automakers for Ignoring Safety Laws
In response to the Toyota Corporation sudden acceleration crisis, legislation titled “The Motor Vehicle Safety Act of 2010” is being drafted representing one of the biggest overhauls of Federal motor vehicle safety regulation in a generation. The most recent comparable action was more than a decade ago when Congress passed new safety rules in the aftermath of the rollover problem involving Ford Explorers equipped with Firestone tires. It is likely that this bill will face opposition from automakers particularly for the following: (1) a provision that removes the existing $16.4 million dollar cap for damages; (2) civil penalties against manufacturers for violations of safety laws; and (3) boosting the fine for violations to $20,000 from the current $6,000.
Many provisions of the proposal include:
1. Require an automobile to stop within a certain distance when the vehicle’s engine is operating with an open throttle. This requirement can be met with a brake override system which insures that the brakes override the accelerator pedal.
2. All car companies will be required to install black boxes or event data recorders to record information about the vehicle before and after the crash and the black boxes must be easily downloadable by third parties.
3. New standards for vehicle electronic systems and keyless ignition systems requiring automakers to standardize the way a driver will bring the vehicle under control in an emergency.
4. Raising the cap on penalties that can be assessed against carmakers from $5,000 to $25,000 a vehicle.
5. NHTSA would receive additional funding and new powers including the ability to order an immediate recall if it finds an imminent hazard of death or serious injury.
6. Includes whistle blower protections and promotes reporting of vehicle defects by requiring a sticker on new vehicles with contact information for the NHTSA.
7. Auto executives who knowingly provide false information to federal regulators would be liable for fines up to $250 million dollars.
8. Create a $9.00 fee per vehicle payable by the manufacturer to fund NHTSA and enforcement of the new requirements under the bill.
The experienced Pennsylvania product liability lawyers and Pennsylvania vehicle defect lawyers and Philadelphia car accident lawyers of Reiff & Bily salute Rep. Henry Waxman (D-CA) and Rep. Bobby Rush (D-IL) for proposing this legislation.
As experienced Philadelphia car accident lawyers and Pennsylvania vehicle defect lawyers since 1979, we believe that it is finally time for the government to start holding automakers accountable for hiding defects, as well as for it to promote vehicle safety.
