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Toyota Recalls Crisis Update

By Nicholas J. Wittner

The BP Oil Spill and ensuing hearings shifted Congressional attention away from the Toyota Recalls and the draft legislation that would have imposed severe new regulatory requirements and potential penalties on automakers. That reprieve and then an election resulting in a lame-duck Congress stalled a last-ditch effort to enact a compromise bill before the new Congress assumed office and Republicans took control of House Committees and agendas.

Except for the severe penalties and some recall decision-making requirements contained in the proposed “Motor Vehicle Safety Act of 2010″ and outlined in a previous article about the Toyota recalls crisis, the reality is that the National Highway Traffic Safety Administration (NHTSA) is moving forward anyway within its existing rulemaking authority to adopt many of the requirements that were in the House and Senate bills. See “The Toyota Recall Crisis: More Than a Re-TREAD,” LJN's Product Liability Law and Strategy, Vol. 29, No. 2, August 2010.

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