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Senator pushes for up to life sentence for auto execs found to delay recalls

Democratic Senator Claire McCaskill (shown above) has had it with automotive execs stalling when it comes to recalls. The Missiourian has proposed a new bill, the Motor Vehicle and Highway Safety Enhancement Act, which aims to improve the automotive safety following the high-profile fiascos involving General Motors and Toyota. Aside from a doubling of the budget for the National Highway Traffic Safety Administration over the next six years and the removal of the $35-million limit for fining automakers, the plan includes a provision that would punish auto executives if it's discovered they knowingly delayed recalls. How will it punish them, you ask? Oh, you know, just life in prison. The bill "gives federal prosecutors greater discretion to bring criminal prosecutions for auto safety violations and increases the possible penalties, including up to life in prison for violations that result in death," McCaskill's office told The Detroit News. If a delayed recall led to serious injuries, meanwhile, execs could still face a 15-year stint behind bars. As for that change in the fine structure for automakers, the removal of the limit is complemented by a hefty increase in the per-vehicle fine, from $5,000 to $25,000. With this change, GM could have been on the hook for $55 billion (with a "b") in fines for its bumbling of the ignition switch recall, rather than just $35 million. The News says, though, that NHTSA has "wide discretion" in handing out the fines. Considering a $55-billion fine is enough to sink any automaker, it is unlikely that such a monumental sum would be handed out. Still, the potential threat of such a death sentence should be enough for any automaker to sit up and take notice. "With millions of Americans behind the wheel every day, and more than 33,000 killed on our roads each year, we've got to do more to keep our cars and the roads we drive them on safe," McCaskill said, according to The News. "Painful recent examples at Toyota and GM have shown us we also must make it easier to hold accountable those who jeopardize consumers' safety. For too long, auto safety resources have remained virtually stagnant while cars and the safety challenges they present have become more complex." What do you think? Do you agree with McCaskill's proposed bill? Should the punishments for automakers and execs be more or less harsh? Have your say in Comments. News Source: The Detroit NewsImage Credit: J.

US-built Corollas will soon be exported to Latin America, Caribbean

Toyota has announced plans to export the American-made Corolla south, to 18 countries in Latin America and the Caribbean by 2014. The move follows statements made to The Wall Street Journal by Toyota's South American leader, Steve St. Angelo, that spoke to Toyota's resolve in emerging American markets.
Toyota is expected to begin export production in April, with initial production of 7,500 Corollas in the first year, courtesy of its Tupelo, Mississippi assembly plant. Years of unpredictable swings in the value of the Japanese yen has seen Toyota push its manufacturing operations in other countries, particularly the US, where its builds ten different models.
Scroll down to read the full press release from Toyota.

Toyota to pay $11 million after trial for fatal Camry crash

Years after Toyota's unintended acceleration fiasco, the company is still making headlines for cars with sticky gas pedals. A federal jury in Minnesota decided yesterday that Toyota should pay $11 million for its role in the crash of a 1996 Camry that resulted in three deaths and sent a man to jail. A stuck pedal caused the Camry of Koua Fong Lee to accelerate uncontrollably and impact an Oldsmobile Cutlass Ciera, killing its driver and his nine-year-old son, and paralyzing a six-year-old girl, who later died of her injuries. Two other passengers in the Olds were seriously injured. Lee spent nearly three years in prison on a charge of vehicular homicide, until the unintended acceleration recall erupted. He filed a motion for a new trial and won, and then joined the suit against Toyota filed by the victims and their families of the 2006 crash that left him imprisoned. The jury found Toyota 60 percent responsible for the accident, with the remaining 40 percent of blame going to Lee. Toyota has denied that the 1996 Camry, which wasn't included in the company's sweeping accelerator pedal recalls, was at fault. Toyota released a statement saying the company respects the jury's decision but believes the evidence clearly showed the vehicle wasn't the accident's cause. The company said it will study the record and consider its legal options. Under Minnesota law, the way the jury allocated fault means Toyota is responsible for paying all damages, minus 40 percent of the amount awarded to Lee, said Lee's attorney, Bob Hilliard. That brings Toyota's total liability to $10.94 million. Lee will receive $750,000 of that total. During the trial, Hilliard, told jurors there was a defect in the car's design. He said the Camry's auto-drive assembly could stick, and when tapped or pushed while stuck, it could stick again at a higher speed. He also accused Toyota of never conducting reliability tests on nylon resin pulleys that could be damaged under heat and cause the throttle to stick. "This is what makes the car go. This is what turns it into a torpedo, a missile, a deadly weapon," Hilliard said during his closing argument. Toyota said there was no defect in the design of the 1996 Camry. The company's attorney, David Graves, suggested that Lee was an inexperienced driver and mistook the gas pedal for the brake. Toyota also noted that Lee's car was never subject to the recalls of later-model Toyotas.