In The Wake of Auto Safety Legislation – an Epidemic of Recalls

Posted by Lauren Moss on June 19, 2010 Leave a comment (0) Go to comments

Even as lawmakers in Washington DC attempt to reconcile the House and Senate versions of the new auto safety bill, it appears that the auto industry is experiencing an epidemic of recalls. Is this because late model vehicles are having more problems, or is the industry seeing the proverbial “handwriting on the wall”?

What’s Being Recalled?

Justice News Flash reports that almost 1.5 million GM cars built between 2006 and 2009 are being recalled because of an electrical problem related to the vehicle’s heated washer-fluid system that may cause fires. According to this same source, some 600,000 Jeep Wranglers and Town & Country Minivans built over the past four years are being recalled by Chrysler because of a design flaw that may cause the inner surface of the front fenders to rub against brake linings and cause brake fluid to leak.

It’s not just American car makers; despite the near-legendary German reputation for superb engineering, BMW and Volkswagen have both issued recalls for 2008-2011 vehicles (the 1 Series and Routan Minivan respectively) because of electrical problems with door latches and safety belt retractors that may present a fire hazard. Significantly, Bloomberg reports that the German auto companies issued their recall notices only 48 hours after new auto safety legislation went before the U.S. Senate.

Of course, Toyota’s problems have been legion and legendary in recent months and now, their chickens are coming home to roost as Clarence Ditlow, who runs the Center of Auto Safety, has now accused the Japanese auto manufacturer of a “pattern of coverups” (reported by UPI).

So…what’s going on, here? Are any cars safe anymore?

It’s About the Money

It’s no secret that human life has no value to corporations, to which maximizing profits is the sole imperative; if it’s cheaper to pay out a few wrongful death claims (most of which are settled out of court or overturned on appeal by corporate-friendly judges appointed over the past decade) than to correct a problem, virtually all major corporations have traditionally chosen the former.

Since the 1980s, lawmakers have been reluctant to address this issue but increasing public anger over growing corporate dominance and lawmakers’ habit of enabling this trend is forcing those in Washington DC to start changing their ways (particularly since many are facing elections this year). The new Senate bill, if passed in its current form, will make it extremely expensive for auto companies to drag their heels when issuing recall notices. Under the new legislation, a car maker could face fines of as much as $300 million (about twenty times what Toyota has had to pay so far).

At the same time, the power and funding of the National Highway Traffic Safety Administration would be greatly expanded when it comes to consumer protections.