P&A Providers & Administrators
MenuMENU
SearchSEARCH

Auto Safety Bill Debate Heats Up

May 7, 2010
3 min to read


WASHINGTON - The House held its first hearing on a sweeping overhaul of the nation's auto safety laws Thursday, but Democrats face a tight timetable to win passage before Congress goes home this summer, The Detroit News reported.


Republicans said the draft written by Rep. Henry Waxman, D-Calif., goes too far and shouldn't impose a per vehicle fee to pay for a $100 million increase in funding for the National Highway Traffic Safety Administration.

Ad Loading...


Waxman's bill would mandate auto black boxes and brake override systems, and grant NHTSA the power to order an immediate stop of sales and production of vehicles that pose an "imminent danger."


Rep. Steve Scalise, R-La., said that idea would "short circuit" the recall process. He also questioned whether the bill was aimed at helping trial lawyers win cases.


The bill is "driving down the wrong road," Scalise said.


The Waxman bill would double NHTSA's enforcement budget by adding a $3 fee on all new car sales, allow consumers the right to appeal the rejection of their safety complaints and hike penalties for automakers and executives caught violating auto safety laws. A similar measure has been introduced by Sen. Jay Rockefeller, D-W. Va., chairman of the Senate Commerce Committee.


Automakers object to some proposals, saying they go too far and impose new mandates too quickly. They back requirements for extended event data recorders and brake override systems.

Ad Loading...


Several Republicans said the new tax is unnecessary and questioned what NHTSA would do with an extra $100 million.


Waxman, chairman of the House Energy and Commerce Committee, said the bill was aimed at restoring "the faith of the driving public." He said drivers had been "severely rattled" by Toyota Motor Corp.'s recall of 8.5 million vehicles worldwide over sudden acceleration concerns.


The new event data recorders proposed for all vehicles would collect far more data than current ones that are in some vehicles -- 60 seconds before a crash and 15 seconds after it. Republicans raised privacy concerns about mandating the devices without more discussion.


Toyota recently agreed to pay $16.4 million for delaying a recall of 2.3 million vehicles over sticky pedal concerns by at least four months. If the Waxman bill had been law, NHTSA could have imposed a $69 billion penalty.


Rep. Joe Barton, R-Texas, called the proposed hike in fines -- including up to $250 million for individual auto executives -- "overkill."

Ad Loading...


NHTSA administrator David Strickland took no position on any of the bill's new mandates and said the Obama administration is still reviewing the bill.


But he said the Waxman bill would "significantly increase the agency's leverage in dealing with manufacturers," and getting imminent hazard authority "would bring NHTSA's authority into line with that of many other safety and health agencies."

More Industry

Photo of gray SUV plugged into public electric-vehicle charger in parking lot
Industryby Hannah MitchellJuly 21, 2026

World EV Adoption Set to Grow

A new report says the segment, despite recent setbacks in some regions, is poised for acceleration as many countries look to reduce pollution.

Read More →
Bar chart of truck and SUV segments' weekly value change
Industryby StaffJuly 21, 2026

Black Book: Weekly Market Update

Wholesale automotive auction business stayed steady last week as bidders encountered lower prices, analysts observed.

Read More →
laptop with blue car on screen on a shopping website, Clear Costs Convert
Industryby Lauren LawrenceJuly 21, 2026

Pricing Transparency Drives Purchase Consideration

An annual study by JD Power found that clear pricing matters to consumers on automaker websites, so much so that it increases their purchase consideration.

Read More →
Ad Loading...
Bar graphic of used-car segment weekly change
Industryby StaffJuly 14, 2026

Black Book: Weekly Market Update

Used-vehicle market depreciation was the prevailing story in the wholesale market last week.

Read More →
Light-blue Fiat car parked on a sunny Chicago street
Industryby Hannah MitchellJuly 14, 2026

Smaller Is Looking Better

A growing number of Americans in the market for a new vehicle are opting for more affordable options, not waiting for market stability to bite the bullet.

Read More →
man sitting at desk using calculator with charts in front of him, to-go coffee cup on desk, rising and falling data chart in front
Industryby Lauren LawrenceJuly 14, 2026

U.S. EV Market Slowly Stabilizes

U.S. electric-vehicle interest is slowly stabilizing since a major dip in sales after last year's end of the federal EV tax credit, and hybrids remain the leading electrified power train.

Read More →
Ad Loading...
blue background, map of the world with connecting lights and an electric vehicle emblem in the middle
Industryby Lauren LawrenceJuly 8, 2026

Global EV Market Entering New Phase

Automakers are making investments to lower battery costs and optimize production to meet changing consumer needs.

Read More →
Bar chart showing week-over-week wholesale automotive price change
Industryby StaffJuly 7, 2026

Black Book Weekly Market Update

The holiday weekend, not surprisingly, put a drag on wholesale automotive activity last week, analysts observed.

Read More →
Photo of Honda CR-V SUV on two-lane road next to roadside trees
Industryby Hannah MitchellJuly 1, 2026

Auto Affordability in Context

Cox Automotive points out the complex circumstances that have led to eye-popping vehicle prices.

Read More →
Ad Loading...
Line chart of used-vehicle days to turn over past week
Industryby StaffJune 30, 2026

Black Book: Weekly Market Update

Automotive auction inventory increased last week, giving choosy bidders even more leeway.

Read More →