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White House Proposes “Stop-Sale” Power for NHTSA
The Obama administration is proposing the National Highway Traffic Safety Administration be empowered to order carmakers to stop selling vehicles with dangerous defects.
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The Obama administration is proposing the National Highway Traffic Safety Administration be empowered to order carmakers to stop selling vehicles with dangerous defects.
The so-called "imminent hazard" authority is part of a six-year $478 billion transportation funding bill sent to Congress on Monday. The measure would for the first time give NHTSA the ability to rule that a safety defect exists without requiring any input or cooperation from a carmaker.
The funding bill proposes other reforms designed to strengthen the agency's ability to respond to safety issues by:
- Tripling the funding and double the staffing for NHTSA's defect investigation unit
- Raising the cap on fines NHTSA can levy against carmakers from $35 million to $300 million
- Legally requiring dealers to check for open recalls on vehicles that come in for service
- Require recall repairs to be performed before a used car could be sold or a fleet car rented
- Determine the feasibility of notifying owners of open recalls when they register their vehicles each year
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