An Individualized Motor Vehicle Recall Information Database? Will OEMs and Suppliers Get the Bill?

by Dickinson Wright
Contact

An Overview of Proposed Amendments to Defect Notification and Early Warning Reporting Regulations

Tucked away in the recently enacted 584 page "Moving Ahead for Progress in the 21st Century Act" is a small provision directing NHTSA to make individualized motor vehicle recall information publically available in a searchable on-line database. The idea is that any vehicle owner using his or her VIN could search for any recalls related to that specific vehicle and determine if or when the recall repairs have been performed. On Monday, September 10, 2012, NHTSA published proposed rules that would, among other things, amend defect reporting requirements in order to facilitate the creation of that data base. NHTSA is now seeking comments on the proposed amendments.

Under NHTSA’s proposal, all major OEMs would be required to include with their Rule 573 "defect and noncompliance" notifications an electronic listing identifying by VIN all potentially affected vehicles and the recall status of each VIN. Originally, each VIN would be identified as "unremedied." Then, as a recall proceeds, the OEM would have to update the "status" information ON A DAILY BASIS FOR 10 YEARS. So, as each individual vehicle is repaired the status would have to be changed to "inspected and repaired" or "inspected and determined not to require repair" and the date of the inspection/repair would have to be added. If a vehicle is not available for repair because it was stolen or scrapped, that information would also be added. NHTSA initially contemplates a central recall database but it has asked for comment on whether manufacturers could host their own sites.

Although directed to the OEMs, this recall requirement can be expected to impose upon not only OEMs, but also suppliers, a new layer of recall costs. OEMs will incur the upfront costs associated with establishing procedures, programming, data collection and processing necessary to supply the requested information. Initially, they will have to up-load recall information for all recalls conducted during the prior two years. They will also incur added costs associated with the mandated 10 years of daily updates. All OEM terms and conditions have provisions allowing for the recovery of all costs associated with certain recalls from the supply chain. A chunk of those costs are administrative costs and the bill will now get higher. The impact on the automotive industry and especially OEMs and their supply chain will obviously depend on the magnitude of these costs.

The proposed rules also include new requirements for defect and owner notifications. As to defect notifications, the rules would:

  • Prohibit disclaimers by manufacturers in defect notifications such as "we haven’t concluded it’s a safety defect but filed the notice anyway."
  • Maintain the 5-day rule for submitting a defect notice but, if the initial filing was incomplete, it would require updated information to be filed within 5 days of it becoming available.
  • Require review of the completeness of each defect notice within 90 days of remedy availability and certification by the manufacturer that the information is complete and accurate.
  • For the recall of items of motor vehicle equipment, require the manufacturer to include, in addition to the generic name of component, its brand or trade name.
  • Mandate inclusion of a statement describing the risk of injury associated with the defect, which most manufacturers do already.

As to owner notifications, the proposed rules would require them to be sent out within 60 days of the filing of the defect notice, regardless of whether the remedy is available. A second notification would be required after the remedy is available, further increasing recall costs. NHTSA also proposes changes to the information included on owner notification envelopes.

Finally, the proposed rules would expand OEM information reporting requirements for early warning reporting of production and incident and claim data.

The comment period for these proposed rules closes on November 9, 2012. The Docket Number is NHTSA-2012-0068.

FOR MORE INFORMATION CONTACT:

Richard A. Wilhelm, is a member in Dickinson Wright’s Detroit office. He can be reached at 313.223.3550 or rwilhelm@dickinsonwright.com.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dickinson Wright | Attorney Advertising

Written by:

Dickinson Wright
Contact
more
less

Dickinson Wright on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):
hide

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.

Security

JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.