The Motor Vehicle Safety Act of 2010
On the heels of Toyota's safety problems comes the Motor Vehicle Safety Act of 2010.

June 24, 2010 /24-7PressRelease/ -- Over the past year, consumers in the United States experienced a variety of serious problems with automobiles. The most prominent involved a series of vehicle recalls by Toyota. These vehicles had a notable problem with unintended acceleration, causing numerous accidents and even deaths in some cases.

Seeking to protect consumers and hold manufacturers more accountable, the Committee on Energy and Commerce recently approved the Motor Vehicle Safety Act of 2010. The bill will now go to the full House for debate. A similar bill is under consideration in the Senate.

Black Box Provision

The most interesting, and perhaps controversial, provision in the bill would require all cars and vehicles sold in the United States to have a "black box" installed to record crash data. This requirement would take effect in 2015.

Some models currently for sale in the U.S. already have black boxes installed. Since 2001, Toyota has used "event data recorders" or EDRs in their vehicles, though the manufacturer has blocked access to the data contained in these devices due to the number of pending lawsuits against the company. In fact, Toyota stated recently that it only has one laptop available in the U.S. capable of downloading the data contained on its EDRs and has not publicly stated what data its EDRs are capable of capturing. Conversely, Ford, Chrysler and GM all use "open system" recorders, which offer law enforcement or anyone else who needs access to the data the ability to view it.

Also, many experts believe there are significant privacy and other concerns with the black box provisions. Many feel that there will be an over reliance on the black box to interpret crash data, using it as a sole source of information. As a stand-alone device to investigate accidents, critics contend it is unreliable.

In an effort to help regulators understand the increasingly complex nature of these devices, the bill also creates the Center for Vehicle Electronics and Emerging Technologies within the National Highway Traffic Safety Administration (NHTSA). This center will allow NHTSA to develop a better understanding of the technology in vehicles.

Avoiding Future Unintended Acceleration Issues

Motivated by the recent troubles with Toyota's vehicles, the bill also urges NHTSA to consider standards for pedals, floor mats and other obstructions to avoid unintended acceleration problems. All vehicles would also be required to have brake override systems in place, which would allow the driver to stop the car even if the throttle is locked open.

According to lawmakers and supporters of the bill, the goal of the legislation, in part, is to hold manufacturers accountable for design and manufacturing flaws. Currently, the NHTSA is relatively limited in the amount of civil penalties and fines it can levy against manufacturers. Despite the number of vehicles recalled, Toyota paid just over $16 million in fines related to the latest rounds of recalls. The Motor Vehicle Safety Act would increase the penalty that the NHTSA can seek per violation and increase the maximum civil penalty up to $200 million.

A Focus on Transparency and Accountability

In 2000, the "Early Warning Reporting" (EWR) system was created. It required manufacturers to report consumer claims, production and performance data to NHTSA to help identify vehicle safety issues. Information deemed confidential business information was exempt from disclosure. The new legislation would require more EWR data to be made public on a quarterly basis. NHTSA will be required to rewrite the agency's rule on confidential business information, with a "presumption in favor of maximum public availability" to the early warning data.

Manufacturers will also be required to have a senior executive in the United States "certify the accuracy information submitted to the NHTSA" after or in response to an investigation. This is similar to the approach taken after the numerous accounting scandals in the U.S., after which Congress passed the Sarbanes Oxley act requiring senior executives to sign off on the quarterly reports and increased accountability for non-compliance.

Currently, any citizen can petition NHTSA and request a defect investigation. When these requests are denied, consumers often have no recourse. A provision in the Motor Vehicle Safety Act would change that, giving those whose requests were denied an opportunity to challenge that decision in court. The bill also gives NHTSA additional powers to issue a recall if it believes there is a "substantial likelihood of death or serious injury to the public" from the use of the particular vehicle.

Concerns Over Who Will Pay

Advocates of the bill believe it will significantly improve the safety of vehicles sold in the U.S. Critics of the bill contend that it is too tough on the auto industry and will ultimately increase the cost of vehicles. The legislation would require manufacturers to pay a "vehicle safety user fee" to help fund the new programs. Critics point out that this cost will ultimately be passed on to consumers.

Observers expect Congress to debate the bill soon and to act before the November elections.

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