Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

Proposed Bill Gets Tough on Auto Executives Over Safety

June 15, 2010
3 min to read


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.

Ad Loading...


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.

Ad Loading...


"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.

Ad Loading...


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.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →