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.
More Industry

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 →
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 →
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 →
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 →
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 →
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 →
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 →
RV Group Expands Carolina Footprint
Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.
Read More →
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 →
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 →