Thune Opening Statement at Commerce Hearing on Takata Air Bag Defects

November 20, 2014

WASHINGTON, D.C.—U.S. Senator John Thune (R-South Dakota), ranking member of the Senate Commerce, Science, and Transportation Committee, today released the following opening statement as prepared for the committee’s hearing entitled “Examining Takata Airbag Defects and the Vehicle Recall Process”:

“Thank you, Senator Nelson, for serving as chairman at this morning’s hearing to examine the alarming Takata air bag recalls and the actions of the National Highway Traffic Safety Administration. These are certainly issues that belong on the Commerce Committee’s agenda. 

“I would first like to thank Lieutenant Stephanie Erdman for being here today. Thank you also for your service to our country. We appreciate you coming here to tell your story and help inform this committee. 

“This hearing is an important one, and our discussion today will explore matters of public safety and accountability. Ensuring the safety of American motorists is a priority, but the public’s trust has been shaken due to the record number of recalls this year and the beliefs many have about problems in the industry and at NHTSA. 

“This year, record fines have been levied against Toyota, GM, and Hyundai. Now, with the latest news of problems with Takata air bags, we are again faced with examining an apparent failure with serious safety consequences. Today we will be asking Takata, NHTSA, and other stakeholders increasingly familiar questions about how these faulty products made it into consumers’ vehicles, when the problem was first discovered, and what steps, if any, could have been taken sooner that may have saved lives or prevented injuries. 

“In this case, many would especially like to know whether the allegations reported in the New York Times that Takata knew of and hid risks related to air bags years ago are true. Questions also exist about NHTSA’s approach to these recalls and the wisdom of the agency’s initial decision to request regional, rather than national, recalls – a decision NHTSA has since reversed for some of the affected vehicles.

“The troubling string of recalls this year should be a wake-up call. I believe we can do a better job of addressing safety issues as they arise and holding automakers, their suppliers, and NHTSA accountable to their shared mission of ensuring safety on America’s roadways. 

“In recent years, Congress has enacted—and NHTSA has sought to implement—a robust early reporting regime. The major automakers and other manufacturers have also instituted or sought to improve internal safety-reporting systems that encourage employees to report safety problems.  But reports of employees whose concerns may have been ignored, silenced, or possibly even covered up persist.

“I believe we can do more to ensure that NHTSA is informed of potential defects as early as possible. That is why, later today, I, along with Senator Nelson, will be introducing the Motor Vehicle Safety Whistleblower Act.  I'm pleased that Senators Heller and McCaskill, who have been in the forefront of the committee's efforts on ‎the GM recalls, are also sponsors of this legislation.  

“This bill will incentivize employees who uncover serious allegations of vehicle defects or violations of motor vehicle safety laws that could lead to death or serious bodily injury to voluntarily provide that information to the Department of Transportation.  If such information leads to DOT or Department of Justice enforcement actions that total more than $1 million in penalties, the whistleblower would be eligible to share in a portion of the total penalties collected. 

“This bill will also protect whistleblowers’ identities and allow NHTSA to share information with the Department of Justice and other federal agencies, where appropriate. Other agencies have similar programs, including programs that incentivize individuals to report information to the Securities and Exchange Commission and the IRS. 

“If there are potential whistleblowers with important information to help NHTSA identify more defects, we want them to come forward, so that these problems can be identified much earlier in the process. I think we would all agree that it is better to address a problem before injuries or deaths occur, if at all possible, rather than relying primarily on fines imposed after the fact. I look forward to working with stakeholders and my colleagues as we continue oversight on these safety matters.

“We will undoubtedly revisit many of these issues when we consider the president’s nominee to lead NHTSA. Having written President Obama twice in the last eight months, urging him to swiftly fill the administrator position at NHTSA that has now been vacant for 343 days, I am pleased that the president finally announced his intention to nominate Dr. Mark Rosekind on the eve of this hearing. This nomination is long overdue, and I look forward to reviewing the nominee’s qualifications and his plan for NHTSA in a timely manner.

“Finally, I urge all of my constituents watching this hearing to pay attention to any recalls and field actions – and if you determine your vehicle is subject to a recall, to get it repaired quickly by an authorized repair facility.

“I thank the witnesses for being here today, and I look forward to your testimony.”

###