P&A Providers & Administrators
MenuMENU
SearchSEARCH

Car Industry to Push Back on Safety Bills

May 5, 2010
3 min to read


WASHINGTON — Automakers are preparing to push back against legislation being drafted in Congress that is designed to improve vehicle safety but that the companies fear could increase manufacturing costs and lead to more civil lawsuits, reported The Wall Street Journal.


The legislation, unveiled Tuesday by Senate Commerce Committee Chairman John D. Rockefeller (D., W.Va.), is among several proposals that seek to address issues raised by Toyota Motor Corp.'s safety recalls for sudden-acceleration reports. A similar bill being written by Rockefeller's House counterpart, Rep. Henry Waxman (D., Calif.), will be the subject of a hearing Thursday.

Ad Loading...


The proposals would increase civil penalties imposed on companies found to have hidden or mishandled car defects, removing the current cap of $16.4 million. They would make it harder for federal safety regulators to become industry lobbyists and would boost funding for the National Highway Traffic Safety Administration, the agency that investigates defects.


The bills also would impose a slew of new rules on car design, covering everything from pedal placement to the performance of electronic-throttle-control systems. Every car would be required to have so-called black boxes that record crash data and technology to ensure a car stops when the gas and brake pedals are simultaneously pressed.


The legislative proposals have stoked industry concerns that auto makers will ultimately be faced with overly prescriptive mandates for new technologies and unrealistic deadlines to meet them.


Michael J. Stanton, president of the Association of International Automobile Manufacturers, a trade group that includes Toyota, Honda Motor Co. and Nissan Motor Co., said the industry wants to work with Congress on a bill and is on board broadly with some of the principles in the current proposals.


But he said the proposals are at times too detailed about what the new technologies should achieve and would require too quick a turnaround for federal regulators to implement the new rules.

Ad Loading...


Some of the new standards would apply to vehicles manufactured within two years after the legislation is passed, a time frame that one executive for a major auto maker called unrealistic and highly costly given that vehicle lineups are planned years in advance.


Many vehicles already are equipped with event-data recorders and brake-override systems, but the new legislation could require more-advanced technology than what is currently on the road.


The Rockefeller and Waxman bills require that black boxes record data from 60 seconds before a crash, a broader time period than what current devices typically record. The new rules could add thousands of dollars to the cost of a vehicle, one auto executive said.


Another provision would make public certain vehicle information provided to federal regulators that currently is considered proprietary and shielded from disclosure requirements. And a separate provision would set up an appeals process in civil courts for complaints dismissed by federal safety regulators. Car companies are concerned that both provisions might lead to more civil lawsuits.

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 →