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 The accord could set the framework for further discussions on safety
reforms and mark a new era of cooperation between automakers and
regulators after a record-setting year of safety fines, recalls and
investigations into malfunctioning vehicles made by General Motors
Co, Fiat Chrysler Automobiles NV, Honda Motor Co and others.
But it stops short of what many safety advocates have urged Congress
and the National Highway Traffic Safety Administration (NHTSA) to
adopt: new binding legal requirements to toughen safety rules. And
automakers may be able to raise the voluntary agreement to argue
against future proposed regulations, saying the accord makes legally
binding rules unnecessary.
The agreement, under discussion for several weeks, would also
attempt to improve vehicle cyber security and the use of early
warning data to detect potential defects that might lead to safety
problems or large-scale recalls, sources said. It would also create
new government-industry task forces to work to improve auto safety.
Despite the voluntary agreement, NHTSA Administrator Mark Rosekind
said the agency will not hesitate to fine automakers that fail to
follow the rules and will not give up its aggressive enforcement of
auto safety rules.
Automakers recalled a record-setting 63.95 million vehicles in the
United States in 2014, incurring large fines from NHTSA.
Companies in the talks leading up to the agreement include GM,
Toyota Motor Corp, Ford Motor Co, Daimler AG, Fiat Chrysler,
BMW AG, Honda, Nissan Motor Co and Hyundai Motor Co.
The agreement is to be announced at the auto show in the U.S. auto
capital of Detroit by U.S. Transportation Secretary Anthony Foxx and
top auto executives, sources told Reuters.
In a letter last week to the NHTSA seen by Reuters, the group of 16
automakers said industry support of an agreement "reaffirms our
shared commitment to safety, and signals to the public the areas in
which government and industry intend to collaborate to further
improve automotive safety."
Automakers met with the NHTSA in Chicago on Dec. 16 and since then
exchanged proposed "Principles for Working Collaboratively to
Enhance Motor Vehicle and Traffic Safety."
In recent days, NHTSA and automakers have continued to propose
revisions, including discussions about government-industry working
groups, according to auto industry officials who spoke to Reuters at
the Detroit show.
The talks come after NHTSA came under intense criticism in 2014 for
failing to detect ignition switch defects in 2.6 million older GM
cars linked to at least 124 deaths. Since then, NHTSA has been more
aggressive in handing out fines and demanding outside monitors
oversee automaker safety compliance.
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NHTSA Administrator Mark Rosekind said on Monday in an interview on
the sidelines of the Detroit show that the agency cannot make
vehicles safe simply by imposing new regulations and handing down
fines. He said he hoped a deal would be announced Friday.
"We're going to have to find new tools - that means new
collaborations, new partnerships," Rosekind said.
But the voluntary agreement will not be enforceable - and is not as
tough as what some safety advocates have called for. With only a
year remaining in the Obama administration, there is a shrinking
window to complete new legally binding auto safety rules.
Sean Kane, president of Massachusetts-based Safety Research &
Strategies Inc and an auto safety advocate, praised NHTSA "for
having a dialogue" with automakers and prodding them to do more on
safety "and be strong on enforcement."
Kane raised concerns about a voluntary agreement that is not legally
enforceable. "It also eliminates input from outside parties" like
safety advocates and consumers, Kane said, "and that is a little
troubling."
Foxx met with top executives from major automakers on Dec. 1 in
Washington. A spokeswoman for Foxx said there have since then been
"productive discussions with auto manufacturers toward agreement on
steps to bolster safety."
Foxx "is hopeful that they will soon result in concrete commitments
that lead to significant safety improvements that will strengthen
public confidence," said his spokeswoman.
Fiat Chrysler CEO Sergio Marchionne said on Monday he agreed with
the NHTSA that the auto industry needs more collaboration with
regulators. He said he wanted the industry to "get to a stage where
safety is no longer a competitive edge used by one automaker against
another."
(Reporting by David Shepardson; Editing by Bill Rigby and Lisa
Shumaker)
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