Trump Team Recommends Scrapping Car-Crash Disclosure Rule Opposed by Tesla—report

by john
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A new report suggests the Trump transition team has proposed abolishing a car-crash reporting requirement heavily opposed by Tesla. This recommendation, if implemented, could significantly impact the government’s ability to oversee and regulate the safety of automated driving systems, according to a document obtained by Reuters.

What’s at Stake?

The current crash-disclosure rule, established in 2021, requires automakers to report detailed crash data involving vehicles equipped with advanced driver-assistance systems (ADAS) or self-driving features. This program has been critical for federal investigations and regulatory oversight, especially as the automotive industry moves toward greater automation.

  • Tesla’s Role: Tesla, a leader in autonomous technology, has reported over 1,500 crashes under this rule.
  • NHTSA Investigations: Data from this program has sparked 10 federal investigations and led to 9 safety recalls across several companies, including Tesla.

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Former employees of the National Highway Traffic Safety Administration (NHTSA) and current regulators emphasize the importance of this data in ensuring public safety.

Why the Change?

According to Reuters, the transition team has labeled the crash-reporting rule as an “excessive mandate” for data collection, potentially paving the way for fewer regulations on autonomous vehicles.

This recommendation aligns with the administration’s broader strategy to “liberalize” autonomous-vehicle regulations, focusing on fostering innovation in the industry rather than enforcing stringent oversight.

Who Benefits?

If the rule is abolished, Tesla could be the biggest beneficiary. With its “Autopilot” and other self-driving technologies often under scrutiny, Tesla has faced criticism after several crashes—some fatal—were linked to its ADAS features:

  • Fatal Crashes: Tesla accounted for 40 of 45 fatal crashes reported to the NHTSA by October 15, including incidents in Virginia and California involving its Autopilot system.
  • Reduced Scrutiny: Without mandatory reporting, Tesla and other automakers may face less regulatory oversight, potentially delaying investigations into vehicle safety.

Industry Reactions

While Tesla has not commented on the proposal, the Alliance for Automotive Innovation, which represents most major automakers (excluding Tesla), has labeled the reporting rule as burdensome.

Elon Musk, Tesla’s CEO, has previously advocated for a streamlined federal approval process for autonomous vehicles. As a member of the newly created Department of Government Efficiency, Musk plans to push for reforms that promote rapid innovation in the self-driving sector.

Read more: Elon Musk Faces SEC Showdown Over Twitter Stock Purchases

The Bigger Picture

Since its inception, the crash-disclosure rule has collected data on over 2,700 crashes, proving instrumental in:

  • Enabling investigations.
  • Leading to safety recalls.
  • Holding automakers accountable for failing to report incidents, as seen with Cruise, GM’s self-driving startup, which was fined $1.5 million for noncompliance.

Despite its critics, the NHTSA argues that this program is essential for evaluating the safety of autonomous systems and preventing potential harm to the public.

Looking Ahead

As the debate over the crash-reporting rule unfolds, the automotive industry finds itself at a crossroads. Should the government prioritize fostering innovation or maintaining stringent safety oversight?

The Trump team’s proposal underscores a clear shift toward deregulation, but the consequences of such a move remain uncertain. For now, the future of autonomous vehicle oversight hangs in the balance.

Stay tuned for updates on this developing story as we monitor responses from Tesla, industry leaders, and government agencies.

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