Page:Full Disclosure Appendix, Eighteen Major Cases.djvu/13

 Improving public understanding of rollover risks was also important because federal rules did not set any minimum safety standards for new-model rollover performance, as they did for front and side impact crashworthiness. The auto industry had successfully opposed such a standard for two decades.

In response to the Firestone/SUV accidents, Congress approved a new targeted transparency system aimed at informing car buyers’ choices and providing incentives for manufacturers to design vehicles less prone to rollovers. The Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act of 2000 required public disclosure of the rollover propensity of each new-model car and SUV as measured by government tests.

Regulators required rollover ratings to be presented in a simple five-star format that paralleled the existing star rating systems for front and side impact crashworthiness. A five-star vehicle had a 10 per cent or less chance of rolling over while a one-star vehicle had a 40 percent or more chance of rolling over.

The new law and regulations added other disclosure requirements. They required tire pressure monitoring sensors by 2004, automakers’ disclosure of information on customer complaints and other early indications of safety defects, and new labels to make it easier for car owners to see if their tires had been recalled.

Disclosure improved over time. The TREAD Act included an innovative provision that required that the government’s initial mathematical modeling of rollover propensity be replaced with a road test that would more accurately mimic real-world driving conditions; Congress also directed the National Academy of Sciences to study possible tests quickly and required regulators to consider the academy’s recommendations. As a result, officials instituted a more accurate test in 2004 that combined modeling with driving maneuvers.

In 2005, Congress further increased consumer access to rollover information by requiring that rollover ratings be posted on new-car stickers in auto showrooms.

Early evidence suggested that auto rollover disclosure helped to inform consumers and encourage safer new-model design. Five years after the requirement was introduced, only one model (the Ford Explorer Sport Trac) received as few as two stars, while twenty-four models earned four-star ratings. Congress’s Government Accountability Office concluded that ratings were “successful in encouraging manufacturers to make safer vehicles and providing information to consumers.” Manufacturers used ratings as a marketing tool in television and print ads.

Interestingly, this targeted transparency system also helped to change the politics of auto safety regulation. By encouraging manufacturers to accelerate introduction of new stabilizing technology, the rollover rating system reduced industry opposition to a minimum safety standard for rollovers. In 2005, Congress directed regulators to issue such a standard.

However, as of 2006, the rollover rating system still had significant weaknesses. The system relied on government rather than manufacturer tests. As a result of budget and logistical constraints, not all new-model cars were tested, and some test results were not available until late in the model year.

Ratings also did not allow consumers to compare the safety of specific models across weight classes.

In addition, backup data for star ratings remained difficult to access. Consumers had to delve into the government’s docket management system or research and development Web page, or visit a National Crash Analysis Center in Washington, D.C.