Senator Claire McCaskill, D-Missouri announced her introduction of a bill that could significantly increase the mandatory fines automakers would face for making unsafe vehicles. The new legislation is largely in response to GM’s recent defective ignition switch automobile recalls – a faulty component that has been linked to several serious injuries and at least 13 consumer deaths. In addition to steeper fines, McCaskill’s bill would also authorize maximum, individual life-sentence jail terms for automotive-safety violations that result in consumers’ deaths.
Automotive Safety Bill contains Tough, Controversial Provisions
The Alliance of Automobile Manufacturers, an organization that represents major automakers, had an opportunity to review the pending legislation, but had not provided McCaskill’s office with any feedback as of August 1st. The Senator admits that the bill is unlikely to pass this year, due to its controversial nature and strict penalties. In addition, Congress has rather limited availability in its in-session schedule between now and year-end.
However, supporters of the bill contend that it’s likely to be perceived as a warning shot of sorts by automakers, particularly by General Motors. In 2014, McCaskill has twice summoned GM executives to sit before a Senate committee. The company leaders complied and answered several questions about automobile recalls for the defective ignition switches that have been linked to several consumer deaths and many more serious accidents and injuries.
New Bill would give Greater Disciplinary Powers to Feds
McCaskill’s bill has been named the Motor Vehicle and Highway Safety Enhancement Act (MVHSEA). If enacted, new laws would raise civil penalties for automotive safety violations from $5,000 up to $25,000 per violation, and would remove the current $35 million cap on damages. Under the proposed bill, GM’s current recall involving 2 million vehicles could have hypothetically yielded close to $50 billion in potential penalties – instead of the $35 million maximum fine already levied by the federal government. McCaskill spokesman John LaBombard explained that a specific fine amount is certainly not mandatory, rather aims to keep deadly, runaway consumer product issues in check.
Supporters of the bill feel that eliminating the cap would give the federal government a far more powerful disciplinary tool to help hold automakers accountable. The bill simultaneously seeks to facilitate vehicle safety enforcement funding for the National Highway Traffic Safety Administration (NHTSA) and also contains further provisions geared toward raising safety standards in rental cars.
Backers of the bill say the most controversial provision might be the one that would enable federal prosecutors to pursue criminal penalties up to a life prison sentence for any workers directly linked to auto safety violations that lead to death. In April, McCaskill accused GM of creating a “culture of cover-up.” However, GM CEO Mary Barra still refused to fire GM’s top lawyer even after McCaskill suggested that he should have known about reports of the ignition-switch problems far earlier than he claimed to have known initially.
References: St. Louis Post-Dispatch
