StarBulletin.com

Panel passes car safety bill


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POSTED: Thursday, May 27, 2010

WASHINGTON » Amid partisan sparring, a House panel has advanced a sweeping auto safety bill that critics contend is too tough on the industry.

The legislation, approved 31-21 by the House Energy and Commerce Committee in the wake of the large Toyota Motor Corp. recalls, now goes to the full House, where lawmakers hope to pass it later this year.

Toyota has recalled more than 8.5 million vehicles around the globe, leading to the first major review of auto safety laws in Congress in a decade.

Under provisions of the bill, automakers would be required to meet new safety standards to prevent unintended acceleration in vehicles—a key issue in the Toyota recalls. They also would face new rules for brake override systems.

» The recovery in U.S. automobile sales from the lowest level in almost three decades may spur a wave of auto-parts acquisitions, drawing interest from hedge funds, private equity investors and rival manufacturers after a two-year slump in deals. The number of auto-parts deals peaked at 338 acquisitions completed in 2007 before falling to 294 in 2008 and 161 last year.