agent Entrepreneur logo
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. 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. 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." 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

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...