US Looks to Increase Fines for Untimely Recalls

US Looks to Increase Fines for Untimely Recalls

In the wake of the massive GM ignition switch recall, U.S. auto safety regulators want to increase the fines for untimely recalls.

U.S. Transportation Secretary Anthony Foxx is proposing to impose higher fines for automakers that don’t report recalls in a timely fashion. Currently, the maximum fine is set at $35 million, but Foxx would like to see that raised to a hefty $300 million. In addition, Foxx wants to force rental car companies to repair recalled vehicles before they are rented again.

SEE ALSO: GM Ignition Switch Recall Underway

Fines on automakers were doubled in 2012 from $17.5 million to $35 million and currently under the law, automakers have five days to recall vehicles after determining they pose an reasonable risk to driver safety.

NHTSA doesn’t have the authority to order an automaker to tell its owners to stop driving their recalled cars, and currently the agency must go through a two-step process of initial investigation and then engineering analysis before it can hold an administrative hearing to compel a recall. After that, NHTSA must go to court to enforce the order.

[Source: Detroit News]