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Auto Industry Gains Ground on Congress’ Get-Tough Safety Bills

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TIMES STAFF WRITER

After problems with Firestone tires on Ford Explorers were linked to scores of deaths on the highways, Congress exploded in fury, vowing to get tough with the auto industry. But now, with lawmakers hastening to wrap up their session, business groups are gaining in their drive to soften or even derail House and Senate auto safety bills.

The bills would require auto makers to report potential problems and would impose criminal penalties in cases in which companies knowingly sold products with deadly flaws or tried to cover up their knowledge of defects.

A key vote today in the House Commerce Committee could presage whether Republicans and Democrats are still united in their resolve to pass a bill. There are signs of division: Democrats are upset that Republicans have not accepted their proposals to improve consumer information about vehicle rollovers.

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“It’s a minefield out there,” said Jackie Gillan, vice president of Advocates for Highway and Auto Safety. “In an election year, it is even more difficult to weave your way through. I’m hopeful, but there are any number of things that could happen.”

Away from the legislative arena, the Clinton administration also has softened somewhat. Last month, Atty. Gen. Janet Reno said the Justice Department would examine whether Firestone and Ford broke any laws before the massive recall Aug. 9. This week, Justice Department officials said they have all but ruled out a criminal prosecution.

“We would never shut the door completely,” said one Justice official. “But . . . there is nothing going on on the criminal side.”

The U.S. Chamber of Commerce, the Alliance of Automobile Manufacturers, the National Assn. of Manufacturers and other corporate groups are working all out to soften what they see as the more draconian aspects of the bills.

The chamber has urged Congress to drop the legislation until next year. But auto industry officials say they could reluctantly accept the House bill, which allows the government to waive prosecution if a company comes forward with information on a defect “within a reasonable time.”

“The House bill would appear at the present time to accomplish the congressional objectives without the unintended consequences in the Senate,” said Mike Stanton, a senior lobbyist for the Alliance of Automobile Manufacturers.

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The House bill would penalize companies that conceal safety defects from the government. The Senate bill, authored by John McCain (R-Ariz.) and Ernest F. Hollings, (D-S.C.) would make companies liable to prosecution if they knowingly marketed a defective product that caused serious injury or death.

Stanton said the industry is concerned the Senate bill would lead to prosecutions in instances in which engineers legitimately disagree that a product was defective.

However, consumer groups say the House bill doesn’t do much since it’s already illegal to mislead the government.

Another deal-breaking issue for the auto industry concerns new information that companies will be required to report to help the government spot potential safety problems.

The Senate bill would require auto makers to inform federal regulators of serious accidents. The companies say they have no way of collecting such data. Under the House bill, the Transportation secretary would determine the kinds of new information that would be useful in spotting potential safety defects.

Meanwhile, advocates of a tougher policy toward the auto industry have failed to resolve disagreements about details, and some are openly squabbling.

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On Wednesday, Joan Claybrook of the Public Citizen advocacy group mocked the criminal penalties provision in the House bill as “a joke.” A spokesman for its author, Rep. W.J. “Billy” Tauzin (R-La.), immediately shot back that “the warranty on [Claybrook’s] credibility has expired.”

As if that weren’t enough, procedural hurdles could block the bill from consideration in the Senate.

Two senators who remain anonymous have put “holds” on the legislation, indulging in an arcane parliamentary maneuver used to keep bills from ever making it to the floor.

Advocates of the House bill say they hope that chamber will pass the bill next week, increasing pressure on the Senate to schedule a vote.

Despite the uncertainties, Rep. Henry A. Waxman (D-Los Angeles) said Wednesday that prospects for a strong bill remain “very good.”

“The public is paying attention,” he said. “When the public is paying attention, Congress must act.”

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Times staff writers Eric Lichtblau and Richard Simon contributed to this report.

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