Proposed Bill Gets Tough on Auto Executives Over Safety

WASHINGTON — Auto executives would face the threat of imprisonment and millions of dollars in civil fines for misleading vehicle-safety regulators under legislation making its way through the U.S. Congress, reported The Wall Street Journal.

The proposal from a Senate committee has emerged as one of the most contentious provisions of bills in the House and the Senate that respond to issues raised by the Toyota Motor Corp. safety recalls.

Lawmakers say that executives need to be held accountable for safety lapses and that the provision would force auto makers to be more forthright about potential car defects. But auto-industry officials say it would turn executives into public scapegoats while failing to address the underlying causes of safety problems.

A provision pushed by Senate Commerce Committee Chairman John D. Rockefeller (D., W.Va.) would require a company's senior executive in the U.S. to sign off on all documents submitted to the National Highway Traffic Safety Administration as part of a defect investigation.

The executive would be fined up to $10 million in civil fines for submitting information that is deemed false or misleading. He or she would also face imprisonment of up to 12 months, beyond criminal penalties outlined in other laws.

During February and March hearings on the Toyota recalls, members of Congress voiced frustration that recall decisions were made by Toyota executives in Japan rather than the U.S. Some lawmakers suggested that car companies designate someone in the U.S. responsible for all safety decisions.

Joan Claybrook, a consumer-safety advocate who has helped write the vehicle-safety bills and supports the provision, said that putting such pressure on top executives would force them to establish a culture of honesty and accuracy.

"You want to have personal responsibility. That's the only thing that's really going to change the way these companies behave," said Claybrook, a former NHTSA chief.

Auto-industry officials say it is unrealistic to expect senior executives to know the veracity of all information provided to the NHTSA, covering thousands of documents that involve the participation of many employees.

The Alliance of Automobile Manufacturers, the industry's main trade group, has also voiced concerns that the Rockefeller bill would treat domestic and foreign auto makers differently. The top U.S. official at domestic car companies is typically the chief executive, while at foreign auto makers, it's generally someone with much less power.

In a letter to the Senate Commerce Committee, Dave McCurdy, the auto alliance's president, urged the approach of House Energy and Commerce Committee Chairman Henry Waxman (D., Calif.), whose bill would target company safety officials in the U.S.

"It is more appropriate for these certifications made by company safety experts who have full knowledge of the issues, rather than by corporate officers," wrote McCurdy, whose group represents both foreign and domestic auto makers.

A spokeswoman for Rockefeller didn't respond to a request for comment Tuesday.

The House and Senate bills have cleared committees and could face a full vote of each chamber this summer.