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NHTSA Administrator Questions Automakers | DrivingSales News

NHTSA Chief: ‘Question Every Assumption’ About Automakers

September 23, 2015 0 Comments

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The Administrator of the National Highway Traffic Safety Administration stated publically that the Volkswagen scandal is a reason for more government skepticism of automakers. According to the Detroit News, Mark Rosekind, the administrator for NHTSA spoke to reporters at an Automotive Industry Action Group Conference. Speaking to the media about the VW scandal Rosekind said, “We’re questioning everything now. You have to question all assumptions … you have to question every assumption when information is provided. It’s a very different place to start, and again, it’s part of the reactive part that is very dangerous for all of us.”

Rosekind’s words come in the shadow of a large controversy surrounding Volkswagen. The automaker got around tough U.S. emissions laws by engineering the software in select vehicles to help the car pass tests. The Environmental Protection Agency has found VW to be in noncompliance with the clean air act and could fine them up to $18 billion. In response, the CEO of VW resigned and dealers can’t sell many 2009 to 2015 VW vehicles. However, NHTSA may investigate the matter and levy more penalties at Volkswagen. NHTSA, after all, has worked with other federal organizations when going after an automaker.

The U.S. Department of Justice, for example, worked alongside NHTSA when they issued a $900 million fine to General Motors. Who’s to say NHTSA won’t add upon the penalties that the EPA could levy against Volkswagen? The greater question is how could regulatory activism impact dealers? If NHTSA does “question all assumptions” and issues significant automaker fines and recalls this year, it could have a negative financial impact on automakers. Those automakers could in turn look to higher MSRP as a means of making up for revenue lost due to governmental regulatory actions. Do you think the Volkswagen scandal will serve as a launching point for greater investigation into all major automakers?

 

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The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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