A coalition representing the world’s biggest automakers including General Motors, Toyota, Volkswagen, and Hyundai has strongly criticized the U.S. National Highway Traffic Safety Administration (NHTSA)U.S. Auto Industry Slams NHTSA for Stifling Innovation, Urges Sweeping Reforms, accusing the agency of being out of touch with current technological advancements and hindering progress in the automotive sector.
Fractured Industry-Regulator Relationship Under Fire
In written testimony submitted to a U.S. House of Representatives hearing on Thursday, John Bozzella, CEO of the Alliance for Automotive Innovation, painted a bleak picture of NHTSA’s engagement with automakers. “Its fractured relationship with the industry, decades-old safety regulations, and lack of a clear strategic roadmap for emerging technologies are stifling innovation and threatening U.S. global leadership,” Bozzella stated.
The Alliance, which represents nearly all major carmakers operating in the U.S., urged lawmakers to push NHTSA for comprehensive reforms, including repealing or updating dozens of outdated regulations.
Calls to Modernize Vehicle Safety and Embrace AV Technology
A major point of contention remains NHTSA’s slow pace in establishing a regulatory framework for autonomous vehicles (AVs). Bozzella emphasized that despite years of discussion, the U.S. still lacks a comprehensive federal policy to support the safe deployment of self-driving cars.
“Unfortunately, federal inaction is holding us back,” Bozzella said, urging regulators to make it easier to deploy AVs without traditional human controls and to revisit rules around mandatory features like automatic emergency braking (AEB).
Fuel Economy Rules Spark Debate
The Alliance also called on NHTSA to scale back planned increases in fuel economy standards set to begin in 2027. Bozzella argued that the proposed targets do not reflect current consumer behavior or the pace of technological adoption. “They are misaligned with consumer demand and current technology adoption rates,” he noted.
Traffic Fatalities Highlight Urgency for Reform
While U.S. traffic fatalities declined by 3.8% in 2024 to 39,345 deaths, the figure remains significantly higher than the 36,355 fatalities reported in 2019. Critics argue that NHTSA’s regulatory inertia is costing lives and limiting safety innovation.
NHTSA’s operational inefficiency was also highlighted—particularly its consistent delays in implementing regulations, even when mandated by Congress, and prolonged periods without a Senate-confirmed administrator.
Insurance Institute Urges More Aggressive Safety Mandates
Echoing the Alliance’s concerns, the Insurance Institute for Highway Safety (IIHS), a safety advocacy group funded by the auto industry, will tell Congress that NHTSA has failed to rise to the moment.
“NHTSA is failing to meet the moment. In recent years, it has approached its job with a lack of urgency,” said IIHS President David Harkey. He criticized the agency for relying on outdated evaluation methods and being reluctant to adopt life-saving technologies.
One specific example cited is NHTSA’s continued refusal to mandate antilock braking systems (ABS) for motorcycles—despite international consensus and data showing motorcycles with ABS are 22% less likely to be involved in fatal crashes. The technology is already mandated in markets such as the EU, UK, India, Australia, and Brazil.
A Crossroads for American Auto Safety Leadership
As the automotive world pivots toward electrification, autonomy, and connected vehicles, industry leaders argue that the U.S. risks falling behind global competitors unless its regulatory systems catch up.
Bozzella concluded, “Without a fundamental reset in how NHTSA engages with innovation, we’ll continue to see missed opportunities and increasing gaps in global competitiveness.”
NHTSA has not yet issued a response to the criticisms.
