Per Car Fee of $9 for Auto Safety May Be Coming

Per Car Fee of $9 for Auto Safety May Be Coming

The recent Toyota recalls have spurred Congress to draft new legislation aimed at boosting the scope of federal oversight of auto safety that may include a fee of $9 on new-car sales for the additional resources Congress wants to provide the National Highway Traffic Safety Administration (NHTSA).

The main direction of the bill is to require automakers to install brake override systems, stop-start engine technology and black boxes that would record accident information, similar to the black boxes found in commercial aircraft.

Proponents of the bill point out that in 1980, NHTSA had 119 people working on enforcement, but due to budget cuts in the ensuing years, the agency now has roughly half that number. Rep. Henry Waxman (D-Calif.), the author of the House version of the bill, said the recent recalls show that NHTSA needs the proper resources, expertise and authority to oversee consumer safety.

The legislation also aims to raise the maximum fine for automaker from the current $16.4 million, which is what Toyota paid for its delay in ordering the recall of 2.3 million vehicles for sticking accelerator pedals. NHTSA chief David Strickland told the House Energy and Commerce Committee recently that hed like the maximum fine to be more than $100 million.

Download Bulletin PDF