Highway-agency chief says auto-safety bill would help

WASHINGTON — The nation's top highway-safety regulator Thursday offered a limited endorsement of a proposed law that would give the federal government greater leverage over automakers by enacting new safety standards and significantly raising the maximum fines for violations of federal safety rules.

The measure would put the auto industry on the same footing as other industries subject to federal oversight, said David Strickland, chief of the National Highway Traffic Safety Administration (NHTSA).

"NHTSA is a strong agency; this bill's authorities would make us stronger," Strickland said at a hearing by the House Energy and Commerce's subcommittee on commerce, trade and consumer protection. "If enacted, these measures would significantly increase the agency's leverage in dealing with manufacturers."

Although Strickland generally supported the goals of the proposed law, his testimony was brief and did not address the substance of the legislation. The Transportation Department was still evaluating the measure, he said.

The proposed law, the Motor Vehicle Safety Act of 2010, is a response to the Toyota's sudden-acceleration problem. The measure has not been formally introduced, but that step is expected any day.

The legislation, sponsored by Reps. Henry Waxman, D-Calif., and Bobby Rush, D-Ill., also would give federal regulators authority to order immediate recalls, as well as set minimum braking distances, mandate event-data recorders and order new standards on vehicle electronics.

Republicans on the subcommittee objected to the specific proposals, saying they would raise taxes, increase spending and create onerous new rules for the auto industry.

"This is being proposed without taking into account what the industry is already doing and without any assessment of whether it will save lives," said Rep. Ed Whitfield of Kentucky, ranking Republican on the panel.

Longtime auto-industry supporter Rep. John Dingell, D-Mich., grilled Strickland about uncertainties that would be created by the proposal. Strickland, for example, acknowledged that the proposal would create unrealistic timetables for new standards and that NHTSA was not asked for its input in writing the legislation.

The auto industry also objected to many provisions, saying federal rules already cover many of the issues addressed by the proposed laws.

"The penalties must be capped," said David McCurdy, president of the Alliance of Automobile Manufacturers.

Without a cap, Toyota, which last month agreed to pay the maximum fine of $16.4 million for delaying a recall for sticky gas pedals, would have been subject to fines of more than $13 billion.

Former NHTSA Administrator Joan Claybrook also testified, saying the new law should give NHTSA the power to impose criminal fines.

Clarence Ditlow, executive director of the Center for Auto Safety, said the proposed law would give NHTSA needed financial resources.

"To expect today's NHTSA to adequately regulate the trillion-dollar auto industry is like asking a high-school basketball team to beat the Los Angeles Lakers," he said.