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Failure to Recall May Cost Makers $300 Million

Feds propose raising top-end find nearly tenfold.

by on Apr.30, 2014

Transportation Secretary Anthony Foxx wants to raise the maximum fine against automakers failing to meet recall rules to $300 million.

Transportation Secretary Anthony Foxx wants automakers to know his department means business with his latest proposal that would raise the maximum fine for not recalling a vehicle in a timely manner nearly tenfold.

As part of the administration’s transportation reauthorization proposal, Foxx proposed making the top fine $300 million, up from the current cap of $35 million. The department doubled the previous high in 2012 raising it from $17.5 million to current figure of $35 million.

Your Automotive Source!

Foxx believes the current top fine isn’t enough of a deterrent for automakers to not obey the rule requiring companies to issue a recall within five days of determining the vehicles pose a safety risk to drivers. (more…)