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10-Fold Fine Rise on Automakers that Fail to Recall Defective Cars

Friday, July 04, 2014

Fines on automakers that fail to recall defective cars would rise almost 10-fold in the U.S. to as much as $300 million per violation under a Transportation Department proposal unveiled today.

Another recall-related provision of the proposed legislation would give the federal government new authority to require removal of the cars when a defect is first discovered, said David Friedman, the acting administrator for NHTSA. A third requires rental car companies to comply with recalls. As the top regulator of the auto industry, NHTSA must hold manufacturers accountable for defect and compliance issues, Friedman said.

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