The Car Industry Can’t Even Build Bumpers Right

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By Douglas A. McIntyre Published

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There were two pieces of important information about the US car industry yesterday. The first is that domestic sales rose 17% in November. The second is that the car industry does not know how to make bumpers correctly.

New Insurance Institute for Highway Safety crash tests demonstrate that: “SUV bumpers that don’t line up with those on cars can lead to huge repair bills in what should be minor collisions in stop-and-go traffic.”

Apparently there are federal rules that require cars to have bumpers to protect them within a zone of 16 to 20 inches from the ground. There are no such requirements for SUVs and light trucks.

In the tests, an SUV going 10 mph struck the back of its paired car, which was stopped. Then the configuration was reversed, with the car striking the back of its paired SUV. Results of these low-speed impacts varied widely, from a total of $850 damage to one vehicle to $6,015 damage to another.

The problem reflects yet another in a huge list of examples of how government neglects safety issues that cause unnecessary costs and potential injuries. It also shows how government and large companies fail to work hand-in-hand to solve what would seem to be simple problems.

The bumper-to-bumper crashes almost certainly raise insurance costs, so the entire bumper system from design, to building, to insuring, to testing, to regulation, to government oversight is broken. It’s too bad. Then again, what is $6,000 in damage in a world in which the car companies are making money again?

Douglas A McIntyre

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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