Government’s Involvement in the Auto Industry
The recent and on-going collapse of the lending and auto industries has exposed an important political fact. There are those who favor a free, self-regulating marketplace (Republicans) and those who recognize unfettered capitalism is not necessarily a good thing and support regulation (Democrats). At least for now, the Democrats seem to have the right idea. So, what has been the relationship between government and auto safety, not counting the prospect of bailing the flailing industry out of its current quagmire? Like all things political, it’s been cyclical. the following is a brief outline of that relationship:
- Ralph Nader’s Unsafe at Any Speed can be credited with the first highway safety legislation as well as the birth of the National Highway Traffic Safety Administration (NHTSA) in the 1960s. Nader’s book focused on the roll-over tendencies of the Chevrolet Corvair, one of the early compact cars. Congress leaped into action, conducted hearings and came up with the National Traffic and Motor Vehicle Safety Act of 1966 and the Highway Safety Act of 1966. The newly-formed NHTSA was tasked with enforcing safety standards, investigating safety defects, setting and enforcing fuel economy standards and conducting research into driver behavior and traffic safety.
- By the early 1970s, gas prices were soaring; Congress responded by enacting the Energy Policy and Conservation Act requiring the automakers to meet fuel efficiency standards: Corporate Average Fuel Economy (CAFE). As the name implies, the standards were based on corporate averages, setting off the introduction of econo-models to help with that averaging process. At the time, light trucks were primarily used as work vehicles and the fuel requirements were less stringent than passenger cars. The auto makers took advantage of the lower standards and the Sport Utility Vehicle (SUV) was born. While classified as a light truck, SUVs were heavily marketed as family cars replacing the station wagon concept.
- During the Carter Administration in the late 1970s, the NHTSA was armed with stiffer regulations and initiated investigations including the Ford Pinto’s gas tank problem that led to explosions following rear-end collisions.
- Then came the Reagan Administration and a move to deregulate whenever possible. the American auto industry was suffering from waves of imports and deregulation was seen as a positive shot in the arm for the industry. The NHTSA’s budget was cut and staff was directed to repeal existing regulations rather than recommending new ones.
- The SUV’s tendency to roll over was exposed in 1980 with a 60 Minutes report on the Jeep CJ, airing tests conducted by the Insurance Institute of Highway safety. The CJ rolled during a “J” turn test, a sweeping right hand turn followed by a straight-away, as well as during common evasive maneuvers. The American public didn’t seem to care; the Jeep CJ continued to sell well and competing manufacturers accelerated their own plans for SUVs.
- Ford introduced its answer to the rolling Jeep with the Bronco II in 1983. Sales topped 700,000 through the end of the decade, but as sales mounted so did lawsuits from roll-over accidents. Plaintiffs discovered that Ford knew the Bronco tipped on two wheels at speeds as low as 20 mph, but did nothing to resolve the safety issue. Engineers suggested widening the vehicle by just two-inches for a more stable platform. Management didn’t want to postpone the target vehicle introduction date.
- By 1986, Sen. Tim Wirth petitioned the NHTSA to force a redesign of the SUV, increasing its stability. His ammunition was a study indicating a relationship between a vehicle’s static stability factor (the width of the track divided by two times the height of its center of gravity) and that vehicle’s stability. NHTSA engineers analyzed the information and found “a pronounced and consistent pattern” supporting the theory that a change in overall dimension would reduce SUV’s tendency to roll over. The Reagan-appointed chief of the NHTSA rejected the concept.
- In 1989, the Ford Bronco was in serious trouble with trial lawyers and safety advocates requesting a recall and the Insurance Institute for Highway safety rating it the most deadly SUV on the road. The NHTSA refused to investigate the Bronco. The logic behind the decision was frightening: to find a safety-related defect, evidence had to be shown that the specific vehicle’s performance was worse than other vehicles in the same category. Basically, the NHTSA concluded, all SUVs were dangerous, and the Bronco not that much more so.
- With the sales success of the Bronco, Ford was preparing to introduce its Explorer in spring of 1989. When put to the same Consumer Report stability test the Bronco had failed, the Explorer also failed. Again, engineers recommended widening the vehicle by two-inches and management, once again, declined. The Explorer became the top selling SUV the following spring.
- As the first war against Iraq was underway, Sen. Richard Bryan proposed stiffer CAFE fuel standards that would include SUVs in the passenger car category. The first Pres. George Bush’s NHTSA head rationalized that stiffer fuel standards would result in smaller cars. Crash tests were conducted showing the danger of big car/small car encounters. Films of the tests were used in an ad campaign funded by the auto industry. The bill died.
- In 1991, an attempt was made to tack on tougher safety regulations to a transportation bill. The only reg that survived was a mandate for passenger side airbags. Roll-over issues were watered down to a “consideration” rather than a regulation. In 1994, Bill Clinton’s Secretary of Transportation also declined to explore roll-over issues with regulations. His answer was a safety sticker with roll-over ratings on all new cars, allowing the buyer to make an informed decision. The sticker concept was declared officially dead in 1999 after an effective attack by Michigan legislators.
- In early 2000, the Ford Explorer/Firestone roll-over/tread separation issue finally got the attention of the NHTSA. Ninety complaints had been logged with the administration; the complaints included reports of 33 crashes, 27 injuries and four deaths. Firestone recalled millions of Wilderness ATX tires, Ford replaced 13 million tires that remained on its vehicles. While the Explorer’s stability was brought into question during the investigation, the vehicle remained the top selling SUV.
- Seven years after the proposal to include rollover ratings on new vehicle window stickers, the NHTSA decides to rate vehicles on rollover stability as part of its New Car Assessment Program. The information was made available to consumers on the administration’s website.
- In the fall of 2000, the TREAD Act was passed. One element was the requirement that NHTSA develop a dynamic stability test for rollovers.
- 2001, Ford introduces a re-designed Ford Explorer. The new model is two inches wider than the old version and includes independent rear suspension.
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