Recall on Regulations

By Edward E. Scharff

Washington drops some costly and questionable auto rules

During the past 15 years, the American automobile has been designed almost as much by Washington bureaucrats as by Detroit automakers. In order to comply with federal safety and consumer-protection regulations, cars took on a variety of new features that included anti-whiplash headrests, impact-resistant bumpers, and safety belts that set off an irritating buzz until everyone in front had buckled up.

The endless flood of new auto regulations may have ended last week, when the Reagan Administration announced the rollback of a series of rules governing cars. The White House proclaimed that the Government will eliminate a total of 34 air-quality and safety regulations that it does not consider cost-efficient. It estimated that these changes will save automakers $1.3 billion and consumers $8 billion over the next five years. Explained Vice President George Bush: "Our thesis on regulation is that it's gone too far."

The Administration measures did not in any way constitute a repeal of the major safety and clean-air standards. But they did revoke some classic examples of costly and questionable bureaucratic rulemaking. For example, the introduction of airbags or automatic seat belts, which was to have been started with some 1982 full-size models, has been put off for at least a year. The requirement to equip cars with dashboard gauges that tell drivers when their tires are underinflated was eliminated. The Reagan Administration also modified the regulation requiring bumpers to withstand crashes at speeds of up to 5 m.p.h. without a dent.

Another casualty: fuel-efficiency standards to take effect after 1985. Because of consumer demand for smaller cars, Detroit is already far ahead of the Government-mandated fuel-economy standards that require each automaker's fleet of cars to reach an average of 27.5 m.p.g. by 1985.

In addition, the White House will ask Congress to amend the Clean Air Act so that cars sold in areas at normal altitude will not have to meet the extra emission standards set for places at high altitude like Denver. That requirement, which would have gone into effect on 1984 models, would increase the cost of every car by an estimated $100 to $150. Quips Keith Grain, publisher of Automotive News: "It's already got to the point where if a guy goes out to his garage, closes the door and turns on the engine to commit suicide, all he does is come out four hours later feeling much better."

Detroit executives were obviously pleased with the Reagan decisions. General Motors Chairman Roger Smith called them "a sensible step toward making regulation more cost-effective." Added James W. McLernon, president of Volkswagen of America: "This is a giant step toward restoring the long-term health of the American automotive industry." But Ralph Nader, the father of many of the auto rules, protested bitterly. Said he: "These regulation rollbacks are going to kill a lot of people and ruin the health and environment for others."

The relief from excessive regulation, though, did not satisfy all the wishes of automakers. Equally pressing on their minds is the question of Japanese auto imports, which last year captured 21% of the new-car market in the U.S. All three major American producers continue to urge restrictions on Japanese cars.

U.S. trade negotiators visiting Tokyo last week, however, did not push the Japanese to cut back on their American sales. The Japanese then nervously hinted that they might restrain their exports to the U.S. without being asked. A growing number of industrial leaders in Japan now believe that auto exports have inflamed too much anti-Japanese sentiment in the U.S. and that Japanese automakers are being unnecessarily stubborn. Said a vice president at Japan's giant Mitsubishi Electric Corp.: "The auto companies are behaving like a visitor to a hospital who prances around a dying patient's bed wearing noisy wooden clogs."

Any help from Japan cannot come too soon for Detroit. Chrysler continues to search for a merger partner, and last week Ford Motor Co. publicly rejected a suggestion that it combine with Chrysler. Ford estimated that its own losses for the first quarter of 1981 could approach $500 million, even worse than the $270 million that Chrysler is expected to lose during the same period.

Meanwhile, the U.S. auto industry, almost without notice, has glided past another ominous milestone. When General Motors two weeks ago raised the price of its cars by about $351, the sticker price for the average GM car climbed just slightly above $10,000. A decade ago, such a five-figure price tag was reserved for fancy limousines and recklessly expensive sports cars. Today it would buy only a modishly equipped Oldsmobile Delta. --ByEdward-L-. Scharff.

Reported by David Beckwith/Washington and Barrett Seaman/Detroit

With reporting by David Beckwith/Washington, Barrett Seaman/Detroit

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