Friday, March 23, 2012

NHTSA Wants to Increase Maximum Car Recall Fines, GOP Disagrees


In 2010 alone, nearly 20 million vehicles were recalled in the U.S. That's not necessarily a bad thing: on the contrary, it shows that car manufacturers are constantly monitoring their product for defects and make sure that they are rectified.

At least in theory because in reality, sometimes manufacturers fail to notify the National Highway Traffic Safety Administration (NHTSA) of defects in the five-day deadline mandated by U.S. law and try to avoid costly, and image-damaging, recalls.

Imposing a fine is one way to force carmakers to comply with regulations. The US$32 million Toyota had to pay in 2010 in the notorious sudden acceleration cases is the most notorious example.

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