Archive for the ‘auto industry’ tag
Senate Panel Gives Nod to Auto Industry Whistleblower Proposal
March 24th, 2015 at 7:00 am
A U.S. Senate panel recently approved a proposal to financially reward auto workers who expose safety defects—defects about which a manufacturer may not be forthcoming. The 13 bipartisan members of the Senate Commerce, Science and Transportation Committee unanimously voted to now bring the measure to the Senate floor.
The proposal was developed as a result of General Motors’ massive recalls for defective ignition switches and Takata Corp’s defective airbag inflators.
Investigations into both companies revealed that there was prior knowledge of the safety issues, as well as attempted cover-ups.
The defective ignition switches have been blamed for almost 400 deaths and thousands of injuries. The defect causes the ignition to switch in a resting position, which then shuts down the steering, brakes and airbags. Documents released last year revealed that design changes were made to the defective switches; however, the company failed to follow proper government regulations which apply to these types of changes.
GM agreed to a $35 million fine imposed by the National Highway Traffic Safety Administration (NHTSA). In addition to the fine, the company is also being investigated by the U.S. Department of Justice (DOJ) for possible criminal charges.
The Takata airbag recall, which involved 17 million vehicles, was a result of at least six deaths and dozens of injuries, caused by the airbags exploding and spraying victims with pieces of metal shards. The NHTSA has accused the company of not cooperating with their investigation, and last month began fining the company $14,000 per day.
If the measure is approved and passed into law, anyone who comes forward to share information regarding product defects or other safety violations would receive up to 30 percent of the amount the company pays in penalties. Those who would qualify include any auto manufacturing employees or contractors, auto dealerships, and auto parts suppliers. Information could be reported to either the U.S. Transportation Department (DOT) or the DOJ.
If you or a loved one has been injured in an accident which was the result of a defective vehicle part, an experienced Westport personal injury attorney can help. Call Richard H. Raphael, Attorney at Law, today at 203-226-6168 to schedule a free consultation.