This isn’t so much a news item as a “Congress finally figured it out” item. A preliminary report by the National Research Council, recently revealed to congress, shows that of 58 Toyota “black box” event data recorders from crashes which occurred during the recall scandal
35 showed that at the moment of impact, the driver hadn’t depressed the brake pedal at all. Fourteen more showed partial braking, while nine showed the brake depressed at the “last second” before the crash.
There were a handful of other results where the brake was pressed early and let go, or in which both the gas and brake pedals were pressed at the same time. There also was one case of pedal entrapment by a floor mat.
In five cases, the electronic recording device failed to work.
It is not at all clear that the greatly accelerated pace of the dealership closings during one of the most severe economic downturns in our nation’s history was either necessary for the sake of the companies’ economic survival or prudent for the sake of the nation’s economic recovery
Whoops! Who could have thought that the biggest political fight of the bailout era was picked over something never really needed to happen. At least, not according to the SIGTARP, the Special Inspector General for TARP, Neil Barovsky. In his latest report on the GM and Chrysler dealer cull [full document in PDF here], Barovsky explodes a lot of the myths surrounding the move to accelerate dealer closings, and even goes so far as to assign real blame… and not to GM or Chrysler either.
With President Obama set to sign a new financial oversight bill into law on Wednesday, the New York Times has dug into the bill looking for key oversights. Because auto dealers were exempted from the bill (thanks at least in part to their mobilization by the GM/Chrysler dealer cull), auto dealer finance tactics ended up square in the NYT’s crosshairs, and paper’s Your Money blog has a rundown of three of the most heinous of these tactics: the Yo-Yo, the Markup and the Add-On.
At a congressional hearing Wednesday, members expressed increasingly skeptical views toward the safety claims made by the usual cast of advocates for photo enforcement. The US House Transportation Subcommittee on Highways and Transit invited five representatives of the familiar groups that advocate expanded use of red light cameras and speed cameras. In presentations before the committee and written testimony, however, members seemed to be more swayed by what the two camera opponents that appeared had to say.
Before the TREAD act came about in the year 2000, I had a PowerPoint chart showing the inside of a U.S. jail, along with inmates (I won’t show the image to avoid a discussion of racism). The headline was: “This is where your career can end.” It was for internal Volkswagen consumption only. Somehow, imprisonment never became law. This was then, this is now: If Washington lawmakers get their wish, managing a car company can imperil livelihood and freedom of the top managers. Read More >
Two Republican congressmen have written to GM CEO Ed Whitacre, asking him to halt the destruction of electronic documents as long as the automaker is owned by the government, reports the Detroit News [Full letter in PDF here]. Reps Darrel Issa (R-CA) and Jim Jordan (R-OH) allege that documents destroyed by GM could have helped their House Oversight Committee investigation of GM’s decision to run its infamous “payback” ad, and shed light on government interference in day-to-day operations including influence over plant locations and a “secret agreement” on revised EPA standards. The congressmen write:
In light of these ongoing investigations, we are deeply disturbed to learn that GM is engaging in a continuous process of destroying documents relevant to the Committee’s oversight efforts
The MVSA has passed its final committee-level hurdle, passing the Senate Commerce Committee by unanimous vote [full Senate version in PDF here, summary here]. The Act now faces votes by the full House and Senate, with only one major issue differentiating the two: the House version includes a “vehicle safety user fee” on new car sales, while the Senate version does without, thanks. Either way, NHTSA gets its budget doubled to $280m by 2013, so the difference is pretty academic. Other minor quibbles include whether or not to cap NHTSA’s fining power at $200m or $300m per defect. Somehow I think they’ll work it out. Look for the bill to move towards President Obama’s desk at distinctly un-legislative speed. After all, a little pork always helps… and the Senate Commerce Committee also just approved a bill (S.1938) ordering the DOT to grant $94m per year to states with hands-free laws for enforcement of those laws, distracted driver awareness education road signs. Who likes the smell of legislation?
The Detroit News reports that two versions of the Electric Drive Vehicle Deployment Act of 2010 will be introduced today in the House and Senate. Both bills would spend about $11b by sending $800 million to $1 billion five to eight “deployment communities.” One of the EDVDA’s bipartisan sponsors, Rep Judy Biggert (R-IL) explains that these funds
will help regional communities establish themselves as models for the development and installation of the next generation of transportation infrastructure, including public charging stations
The bill is being backed by several small EV firms, like A123 Systems and Bright Automotive, under the rubric of the Electrification Coalition. And despite the fact that everyone loves a good subsidy, the mainstream automakers are not amused.
The House Energy And Commerce Committee has passed an amended version of the Motor Vehicle Safety Act that was previously approved by its Subcommittee on Commerce, Trade and Consumer Protection. True to our prediction, longtime auto industry ally Rep John Dingell (D-MI) was able to maintain caps on NHTSA’s fining power at $200m per automaker per defect recall (up from the current cap of $16.4m) and $5m per auto executive per defect, and require that NHTSA inform automakers and allow for an appeal before invoking the “imminent hazard” powers authorized by the bill. Dingell tells Automotive News [sub] that
The bill is going to be a hard one for the industry to accept, but I believe it’s in the public interest and is good overall.
Rep Henry Waxman’s version of the Motor Vehicle Safety Act passed the House Subcommittee on Commerce, Trade and Consumer Protection today, and will go before the full Committee On Energy And Congress. The subcommittee markup [in PDF format here] includes a number of provisions that the industry and others had argued against, such as a $9 fee on each new vehicle sale, and mandatory event data recorders (EDRs) which would “continuously record vehicle operational data” and store all data from 60 seconds before, and 15 seconds after a crash. According to Automotive News [sub], Rep John Dingell is in negotiations with committee chairman Waxman to mitigate two key proposals: the removal of a cap on NHTSA fines, and the granting of so-called “imminent hazard” authority.
President Obama has weighed in on a crucial matter facing legislators attempting to overhaul America’s financial system: whether or not auto dealer finance should be subject to regulation by the new Consumer Protection Agency. Unsurprisingly, he has come down on the side of regulation, specifically echoing concerns voiced earlier by the Pentagon. The National Automobile Dealers Association has vowed to fight attempts to regulate dealer finance.
Statement by President Obama on Financial Reform
Throughout the debate on Wall Street reform, I have urged members of the Senate to fight the efforts of special interests and their lobbyists to weaken consumer protections. An amendment that the Senate will soon consider would do exactly that, undermining strong consumer protections with a special loophole for auto dealer-lenders. This amendment would carve out a special exemption for these lenders that would allow them to inflate rates, insert hidden fees into the fine print of paperwork, and include expensive add-ons that catch purchasers by surprise. This amendment guts provisions that empower consumers with clear information that allows them to make the financial decisions that work best for them and simply encourages misleading sales tactics that hurt American consumers. Unfortunately, countless families – particularly military families – have been the target of these deceptive practices.
If you listen to the commentators, you’ll believe that tax breaks and stimulus measures are the sole reason for China’s car boom. It turned the country into the #1 car market in the world. What’s more, the boom continued unabated in 2010. Wonks are worried that the market will crash when the stimuli are withdrawn. Don’t worry. There will be new ones. This time, for electric cars. Read More >
Due to scheduling conflicts with a certain island nation’s democratic rituals, CSPAN didn’t have a channel to spare for today’s auto safety legislation hearing before the the House Energy and Commerce subcommittee. Which means your faithful blogger is at the mercy of the mainstream media’s digestive process in this matter. Regardless, it seems clear by now that the legislation has driven the industry back to the Republican bosom, after a period of post-bailout estrangement. These newly-re-allied forces collectively raised concerns about a number of key proposals presented by Rep Henry Waxman’s Motor Vehicle Safety Act of 2010, including the un-capping NHTSA fines, privacy issues relating to “black box” event data recorders, new car sale vehicle fees, pedal clearance standards, and increased regulation of an industry with state-owned competitors.
Senator Jay Rockefeller (D-WV) has introduced a draft version of his Motor Vehicle Safety Act of 2010. As TTAC has reported, the bill contains a number of provisions, including mandated pedal distances, mandatory brake override, keyless ignition standards, vehicle event data recorder standards, transmission configuration standards, increased penalties for recall delays, and much, much more. Hit the jump for a full description of the measures under consideration.
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