NHTSA Fines Auto Firms $10.2 Million

The National Highway Traffic Safety Administration collected $10.2 million in civil penalties from automakers and other companies in 2004, the bulk of which was paid by two carmakers for exceeding federal fuel-economy limits. The two car manufacturers, Porsche Cars North America and Ferrari Maserati North America, paid penalties totaling $9 million for failing to meet the government's corporate average fuel economy, or CAFE, standards, NHTSA said Wednesday. Porsche's share was roughly $7.9 million. Ferrari's was $1.1 million.

From Associated Press

DETROIT — The National Highway Traffic Safety Administration collected $10.2 million in civil penalties from automakers and other companies in 2004, the bulk of which was paid by two carmakers for exceeding federal fuel-economy limits.

The two car manufacturers, Porsche Cars North America and Ferrari Maserati North America, paid penalties totaling $9 million for failing to meet the government’s corporate average fuel economy, or CAFE, standards, NHTSA said Wednesday. Porsche’s share was roughly $7.9 million. Ferrari’s was $1.1 million.

NHTSA spokesman Rae Tyson said the amount collected for CAFE violations this year was about $6.5 million less than 2003.

“There’s an established formula for fuel economy, and they either meet the requirements or they don’t,” Tyson said.

General Motors Corp. paid a civil penalty of $1 million to settle charges it failed to conduct a timely recall to correct a safety defect, NHTSA said. The problem involved possible faulty windshield wiper equipment on 581,344 midsize sport-utility vehicles manufactured in 2002 and 2003.

GM announced the recall in February and said the condition had caused at least two accidents but no injuries or fatalities. The world’s largest automaker has recalled more than 10.5 million vehicles in North America this year, the vast majority in the United States.

NexL, a Watsonville, Calif., company, agreed to pay a penalty of $100,000 for importing and selling motorcycle helmets that failed to meet Department of Transportation standards, NHTSA said. NexL also was charged with failing to conduct a timely recall.

Two vehicle customizing firms agreed to pay a total of $21,000 for removing driver’s side air bags to install video monitors in the steering wheel. Federal law prohibits companies from removing mandated safety equipment.

The two companies fined were West Coast Customs of Inglewood, Calif., ($16,000) and Unique Autosports of Uniondale, N.Y. ($5,000). West Coast Customs gained notoriety this year for its featured role on the hit MTV makeover show, “Pimp My Ride.”

“We’re concerned about this customizing trend, and we’ll continue to vigorously enforce the law,” Tyson said.

Also, G&K Automotive Conversion of Santa Ana, Calif., agreed to pay $12,000 to settle allegations it imported improper vehicles, submitted inaccurate certificates of conformity and improperly released vehicles for use on public roads, NHTSA said.

Last year, NHTSA collected $661,000 in non-CAFE related penalties, Tyson said.

_______________________________________

Click here to view the rest of today’s headlines.