U.S. Transportation Secretary: Increase fines for delayed recalls

Apr 29, 2014

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.