Automobile manufacturers, dealers, rental companies and the U.S. Chamber of Commerce, have lost their fight against a federal bill that will significantly increase automaker fines for companies who delay automobile recalls. Currently, the maximum fine is just over $17 million, but once the bill goes into effect, the fines could go as high as $200 million. According to groups opposing the bill, “The increases are completely out of proportion to the current penalty structure for manufacturers under the Consumer Product Safety Act.” The bill was introduced in response to unintended acceleration recalls by Toyota in 2009-2010. Even though Toyota vehicles were cleared of electronic flaws causing unintended acceleration, the company ended up paying maximum fines for recall delays.

Other provisions of the bill include an increase in the maximum fine for odometer fraud; new regulations for vehicle pedal placement and push-button ignition; an improved recall database and website; and an anonymous complaint hot line for auto workers, dealers and mechanics to report vehicle safety problems.

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