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Tue April 29, 2014
U.S. Transportation Secretary: Increase fines for delayed recalls
U.S. Transportation Secretary Anthony Foxx is asking Congress to approve higher penalties for car companies that delay recalls.
The request is part of a proposed $300 billion long-term transportation budget for U.S. road, bridge, and transit projects.
Right now, the most the National Highway Traffic Safety Administration can fine a car company over a delayed recall is $35 million.
Foxx proposes Congress should increase that to $300 million.
The proposal comes after three recall scandals – one involving Toyota, which delayed a recall of more than eight million cars for a risk of unintended acceleration – another involving Ford, which delayed a recall of about 500,000 cars, also for a risk of unintended acceleration.
The most recent scandal involves General Motors, which for nearly 10 years, delayed a recall of 2.6 million cars for a faulty ignition switch. The National Highway Transportation Safety Administration is still investigating the circumstances of the delay.