Government Could Order Immediate Halt of Auto Sales as Congress Looks to Overhaul Auto Safety

Government Could Order Immediate Halt of Auto Sales as Congress Looks to Overhaul Auto Safety

A major overhaul of the nation's auto safety laws may be in the works if Congress pushes forward on legislation introduced in both Houses this week that calls for nearly fool-proofing the driving and braking systems on cars and trucks and boosting civil penalties for automakers that don't quickly recall vehicles.

More significant for automobile dealers, however, it gives sweeping new power to the National Highway Traffic Safety Administration (NHTSA) to immediately halt sales and production of suspect vehicles in the event it determines they are an “imminent danger” to the public.

The Motor Vehicle Safety Act of 2010, introduced by Sen. Jay Rockefeller (D-WVa.), and a near identical measure introduced by Rep. Henry Waxman (D-Calif.) will require brake override systems as well as event data recorders in new cars and trucks (black boxes) and establishes a gas pedal placement standard to prevent entrapment under floor mats. It also would require standard one-push — stop-start technology for keyless ignition systems.

The black boxes required by Congress would collect episode data 60 seconds prior to — and 15 seconds after — a vehicle crash and airbag deployment.

The measures would double NHTSA's auto safety budget next year, and in the House version add a new $9-per-vehicle fee to pay for the auto safety budget hike.

Senior auto executives in the United States would also be required to attest in writing that all information submitted in response to a NHTSA investigation is accurate and complete and be subject to civil penalties of up to $250 million as well as criminal penalties.

Toyota — which could have faced a $13.8 million fine without a cap — could have faced a $69 million penalty under the new law.

Toyota agreed last month to pay the largest-ever fine of $16.4 million for its at least four-month delay on the sticky pedal recall.

Toyota has recalled more than 8.5 million vehicles worldwide over sudden acceleration concerns, and NHTSA has received more than 3,000 complaints alleging at least 51 deaths since 2000.