A Guide for the Reporting, Notification, and Remedy
of
Motor Vehicle and Motor Vehicle Equipment in Accordance with
Title 49 of the United States Code, Chapter 301
and Supporting Federal Regulations

Prepared by the<\P>

Technical Analysis Branch
Office of Defects Investigation
Safety Assurance
National Highway Traffic Safety Administration
U.S. Department of Transportation

Telephone: (202) 366-5227
FAX: (202) 366-7882

2nd Release
August 1996

I. Reporting Requirements

When to Report [49 U.S.C. § 30118 and Part 573.5(b)]

A manufacturer who has determined that a safety defect or noncompliance exists, must report such a determination to NHTSA within 5 working days. The determination may be that the defect or noncompliance exists, at least in some vehicles or items of motor vehicle equipment, while the cause, scope, and remedy may not be known at the time of the determination. Under Part 573.5(b), if part of the information which is required to fully describe the recall (Part 573.5(c)) is unknown, notification to the agency must be made with the existing information. The remaining information can be provided as it becomes available.

Note that motor vehicles or items of motor vehicle equipment containing the safety defect or noncompliance cannot be sold in accordance with 49 U.S.C. § 30112 and 30120, while a manufacturer's petition for a determination that the defect or noncompliance is inconsequential with respect to motor vehicle safety is under consideration.

Who Should Report [49 U.S.C. § 30102 and 30118; Parts 573.3 and 579]

Federal regulation 49 CFR Part 579, "Defect and Noncompliance Responsibility," states that each manufacturer of a motor vehicle shall be responsible for any safety-related defect or any noncompliance determined to exist in a vehicle or in any item of original equipment⁽¹⁾. The manufacturer of an item of motor vehicle equipment in which a safety defect or noncompliance is determined to exist, (1) is responsible for notifying the vehicle manufacturer and (2) with respect to an item of replacement equipment (including tires), has recall responsibility for the safety defect or noncompliance in the equipment.

Federal regulation 49 CFR Part 573, "Defect and Noncompliance Reports," identifies the specific requirements for safety recalls including defect/noncompliance information reports and quarterly status reports.

Part 573.3(f) addresses original equipment manufacturer responsibilities. If an item of original equipment is determined to contain a safety defect or noncompliance and is installed in the vehicles of more than one manufacturer, then the equipment manufacturer must file a defect/noncompliance information report (Part 573.5) with respect to the equipment and each vehicle manufacturer must file a defect/noncompliance information report with respect to its vehicles containing that equipment. Either the vehicle manufacturer or the manufacturer of the equipment containing the defect/noncompliance can conduct the actual recall and submit the required quarterly reports (Part 573.6). In the case where the item of original equipment containing a defect or noncompliance is sold to only one vehicle manufacturer (see Part 573.3(e)), the filing of the defect/noncompliance information report, performance of the recall, and the filing of the quarterly reports by either manufacturer is considered compliance by both. However, if the original equipment manufacturer also sells the item as replacement equipment, then that equipment manufacturer must also file and conduct a recall in accordance with Part 573 for those items of replacement equipment.

This means that a vehicle manufacturer has ultimate responsibility for what is installed in the vehicle. A supplier of the original equipment which may contain either a defect or a noncompliance, can conduct the recall for the vehicle manufacturer. However, if the supplier also sells the item of motor vehicle equipment as replacement parts or assemblies, then that manufacturer must file a Part 573 report and conduct a recall for those items of replacement equipment.

The Defect/Noncompliance Information Report

[49 U.S.C. § 30166, 30118, and 30119 and Part 573.5(c)]

Part 573.5 addresses Defect and Noncompliance Information Reports, which must be filed within 5 working days of a determination by the manufacturer, or its agent, that a defect or noncompliance exists in its vehicles or items of motor vehicle equipment. Key elements of the information report to the agency are the recall population, problem description, chronological summary, remedy, and recall schedule.

Some submitted Defect/Noncompliance Information Reports have typically resulted in follow-up requests for certain additional information, particularly concerning the recall scope, the cause of the defect or noncompliance, the supplier of the recalled component/assembly (if applicable), the remedy, or the remedy schedule. Complete information in these areas is necessary for the agency to reasonably assume that the proposed recall program is complete.

Identifying the Recalling Manufacturer, Importer, Distributor, or Brand Name Owner

Part 573.5(c)(1) specifically requests the full corporate or individual identification of the fabricating manufacturer/brand name/trademark owner of the vehicle or item of motor vehicle equipment being recalled. If the recalled vehicle or item is imported, provide the name and address of the designated agent must be provided, as prescribed by 49 U.S.C. § 30164(a).

New Part 573.5(c)(11) states that the manufacturer's campaign number be provided, if it is not identical to the identification number assigned by NHTSA.

Recall Scope and Application

The scope of the recall, how it was determined, and whether other vehicles or manufacturers may be involved is extremely important. This includes information concerning how the inclusive dates of manufacture and the involved vehicles were determined. If the initial date of the recalled population is the start of production for the vehicle (or item of motor vehicle equipment), then it should be identified as such. In any case, an explanation on how the starting and ending dates of manufacture for the recalled population was determined must be provided.

The agency needs a clear definition of the recalled population. As appropriate, this includes a description of why a particular model or model year vehicle was included, but some other similar vehicle was not.

Part 573.5(c)(2) specifies that the recalled population of vehicles or items of motor vehicle equipment be identified as follows:

1. Passenger Cars - Furnish the make, model, model year, the inclusive dates (by month and year) the vehicles were manufactured, and the number of vehicles potentially containing the defect or noncompliance for each model vehicle recalled. Furnish any other information as appropriate to describe or distinguish the recalled vehicles. It is requested that the Vehicle Identification Number (VIN) range of the recalled vehicles be provided.
2. All Other Vehicles - Furnish the make, model (if applicable), bodystyle/type, model year (if applicable), the inclusive dates (by month and year) the vehicles were manufactured, and the number of vehicles potentially containing the defect or noncompliance for each model or applicable vehicle line. Furnish any other information as appropriate to describe or distinguish the recalled vehicles, such as gross vehicle weight rating or class for trucks, displacement (cc) for motorcycles, and number of passengers for buses. Photographs or illustrations may be submitted as appropriate. It is requested that the VIN range of the recalled vehicles be provided.
3. Motor Vehicle Equipment - Furnish the generic name of the item (i.e. tire, axle, cruise control, etc.), brand or trade name, part number, size and function (where applicable), the inclusive dates (by month and year) the item was manufactured, and the number of items potentially containing the defect or noncompliance for each recalled item series or product line. Furnish any other information as appropriate to describe or distinguish the recalled item or product line.
4. Motor Vehicle or Motor Vehicle Equipment Containing a Component that contains a defect or noncompliance manufactured by a manufacturer other than the reporting manufacturer, the reporting manufacturer shall identify the component by name, and the manufacturer of the component by name, business address, and telephone number. If the reporting manufacturer does not know the manufacturer of the component, then it shall identify the name, addresses, and telephone number of the entity from which the component was obtained.
5. In the case of motor vehicle equipment, the manufacturer of the equipment must provide the name, address, and telephone number of every manufacturer that purchases the defective or noncomplying component for use or installation in new motor vehicles or new items of motor vehicle equipment.

The total number of vehicles or items of motor vehicle equipment recalled potentially containing the defect or noncompliance is requested in Part 573.5(c)(3). In addition, Part 573.5(c)(4) asks for the approximate percentage of the total number of vehicles or items of motor vehicle equipment estimated to actually contain the defect or noncompliance shall be provided.

Defect or Noncompliance Condition

Part 573.5(c)(5) specifies that the defect or noncompliance condition be described. The description should include, but not be limited to, a brief summary of the nature (addressing the contributing factors and known causes), physical location of the defect or noncompliance, and the consequence. Photographs or illustrations should be provided where appropriate.

A description of the cause of the defect or noncompliance should allow the agency to ascertain whether the problem may be supplier related, and whether other vehicle manufacturers may also have the same problem. A complete discussion of the cause of the defect or noncompliance is needed in order to determine if the remedy is adequate or applicable.

When the defect/noncompliance is in a particular component or assembly which is (a) supplied by another manufacturer, or (b) that component or assembly is possibly sold to other manufacturers or distributors in virtually the same form and manufacture; all these entities are to be identified.

In the case of a defect: Part 573.5(c)(6) specifies that a chronological summary (including dates) of all the principle events that were the basis for the determination of the defect be provided. The summary should include, but not be limited to, the number of reports, consumer complaints, accidents, injuries, fatalities, and warranty claims.

With respect to a noncompliance: Part 573.5(c)(7) specifies that the test results or other data (including dates) on which the manufacturer determined the existence of the noncompliance be provided.

Remedy Development

A description of the manufacturer's program for remedying the defect or noncompliance is required under Part 573.5(c)(8). A full description of what the remedy is, how the remedy will be implemented, and how the remedied vehicle or item of motor vehicle equipment can be distinguished from the recalled motor vehicle or item of motor vehicle equipment be necessary. If the motor vehicle or item of motor vehicle equipment is still manufactured at the time of the recall, identify and describe the production remedy if the production remedy is different than the field fix.

It is the manufacturer's responsibility to insure that the recall remedy will perform satisfactorily, both as installed and in-service. As such, the agency is concerned with how the remedy, or the durability of the remedy, was established. In noncompliance recalls involving performance, testing to demonstrate compliance is likely to be requested.

For motor vehicles: 49 U.S.C. § 30116 requires that a vehicle manufacturer provide the parts and instructions necessary to remedy new vehicles in dealer or distributor inventory as soon as possible. 49 U.S.C. § 30120 requires that once notified that a new vehicle in the dealer's possession contains a safety-related defect or noncompliance, a dealer cannot sell the vehicle until the defect or noncompliance is remedied.

For items of motor vehicle equipment: 49 U.S.C. § 30116 requires that manufacturers immediately offer to repurchase all unsold inventory of distributor and dealer/retailer stock which may contain a safety defect or noncompliance. 49 U.S.C. § 30120 requires that once notified that a new item of equipment in the dealer's possession contains a safety-related defect or noncompliance, a dealer cannot sell the item of equipment until the defect or noncompliance is remedied.

Recall Schedule

Under Part 573.5(c)(8)(ii), the manufacturer is to provide the estimated date on which it will begin sending notifications to owners that there is a safety-related defect or noncompliance that the remedy without charge will be available, and the estimated date on which it will have completed such notification. If a manufacturer subsequently becomes aware that either the beginning or the completion date reported to the agency will be delayed by more than 2 calendar weeks, it shall promptly advise the agency of the delay, including the reasons for the delay, and a revised estimate.

It is preferred that a recalling manufacturer provide a recall schedule for the public notification and remedy campaign which includes the approximate, or actual date, of the principle events (e.g., when the remedy will be developed. obtain parts sufficient to begin the campaign, develop the owner notification list of names and address, develop the dealer notice, develop owner notification letter, notify dealers, distributors and retailers of recall, notify owners, notify media, follow-up owner notification, etc.). The schedule should also clearly identify how the notification campaign implementation plan is to be conducted, i.e., nationally and uniformly, phased, or some other permutation. If the implementation plan for the public notice campaign is other than national and uniform, the basis for the particular implementation plan should be fully explained.

Part 573.5(c)(8)(iii) states that if a manufacturer intends to file a petition for an exemption from the recall requirements of Title 49 U.S.C. Chapter 301 on the basis that a defect or noncompliance is inconsequential as it relates to motor vehicle safety, it shall notify NHTSA of that intention in its report to NHTSA of the defect or noncompliance under this section. In addition, paragraph (iv) states that if a manufacturer notifies NHTSA of its intention to file a petition for inconsequentiality as it relates to motor vehicle safety, and does not do so within the 30-day period described in Part 49 CFR Part 556.4(c), the manufacturer must submit the information required by Part 573.5(c)(8)(ii), the estimated dates for the public notification and remedy campaign, no later that the end of the referenced 30-day period.

Notices and Communications

Part 573.5(c)(10) requires that a manufacturer submit a copy of its proposed owner notification letter, written in accordance with 49 CFR Part 577, "Defect and Noncompliance Notification," to the Office of Defects Investigation (ODI) no fewer than five Federal government business days before it intends to begin mailing it to owners. The letter can be submitted by any means which permits the manufacturer to verify promptly that the copy of the proposed letter was received by ODI. For efficacy, we recommend that the letter be submitted in draft by FAX [(202) 366-7882]. The letter will be reviewed and the manufacturer notified immediately.

Part 573.5(c)(9) specifies that a representative copy of all notices, bulletins, and other communications that relate directly to the defect or noncompliance and which are sent to more than one manufacturer, distributor, dealer/retailer, or purchaser are to be furnished to NHTSA. The representative copies are to be submitted to the ODI not later than 5 days after they are first sent to manufacturers, distributors, dealers/retailers, or purchasers. The representative copies of notifications or communications are to consist of all initial and/or subsequent communications actually sent by any means, including draft, intermediate, and final notifications or communications. The submissions should include printed copies (or transcripts) of all communications regardless of the media used to transmit the information.

Please note that submission of documents pertaining to a safety recall in accordance with Part 573.5(c)(9) are to be submitted separately and in reference to NHTSA's assigned safety recall number. This is in addition to the requirements of Part 573.8 where all manufacturer communications with owners, dealers, and distributors must be submitted to ODI on a monthly basis.

Comments on the Defect/Noncompliance Information Report

In summary, a complete Information Report should provide sufficient information for ODI to assess whether the scope and application of the recall is appropriate, whether the problem possibly includes other vehicles or items of motor vehicle equipment, and the adequacy of the public notification and remedy campaign. If necessary, a follow inquiry can be initiated to obtain the information.

Note that a Defect/Noncompliance Information Report does not contemplate a prior investigative file with NHTSA. The recall file and the investigative file are two separate entities with different file retention systems and different NHTSA identification codes. The information provided and required for recalls which have been the subject of an agency investigation is the same information which must be provided for those recalls which do not have an investigative file.

Defect/Noncompliance Information Report Guide

To assist manufacturers with the development of Defect/Noncompliance Information Reports, the office has developed a series of Defect/Noncompliance Information Report Guides or forms which can be used either to report a defect or noncompliance, or as a guide in developing such a report. The guides are available for vehicles, equipment, and tire recalls. Appendix B is a representative Defect/Noncompliance Information Report Guide which should be appropriate for that aspect of the automotive industry with which your company is involved according to our records.

How and to Whom [49 CFR Part 573.9]

All required reports should be submitted to:

Whenever possible, the document should also be faxed to (202) 366-7882 to the attention of Mr. Jon White, Chief, Technical Analysis Branch. Draft documents or items of concern can similarly be faxed in or discussed with Mr. White or Mrs. Pat Wallace at (202) 366-5227.

NHTSA Receipt and Acknowledgement

Upon receipt of the Defect/Noncompliance Information Report, ODI will assign a unique safety recall identification number to the recall. This information will be communicated to the manufacturer immediately by fax. Shortly thereafter, ODI will send a formal, written acknowledgement letter providing the identification number and additional information on the scheduling of the recall. If necessary, the letter will also request additional information or identify specific concerns ODI may have with the proposed recall.

The recall is summarized and entered into the ODI data system which is accessible to the public through the Auto Safety Hotline (800-424-9393) or the Technical Reference Division (202-366-2768). NHTSA issues a monthly news release which briefly summarizes the recalls that were filed during the preceding month. Manufacturers wishing consideration for an exemption are advised to request consideration in a separate letter accompanying the Defect or Noncompliance Report, describing the basis for the exemption or postponement.

Petitions for Inconsequentiality Determination [49 CFR Part 556]

A manufacturer that has determined that a safety defect or noncompliance with an FMVSS exists in certain motor vehicles or items of equipment, and has filed a Defect/Noncompliance Information Report to NHTSA, has the option of petitioning the agency for a determination of inconsequentiality. The petition must be filed within 30-days from the date of the determination of a safety defect or noncompliance. A determination of inconsequentiality means that the defect or noncompliance is inconsequential as it relates to motor vehicle safety. Such a conclusion allows the manufacturer to be exempted from the statute's notification and remedy requirements for motor vehicles or items of motor vehicle equipment identified in the Defect/Noncompliance Information Report. However, any additional production after the inclusive dates identified in the Defect/Noncompliance Information Report must be remedied or otherwise not contain the defect or noncompliance. Only rulemaking (such as provided in 49 CFR Part 552, "Petition for Rulemaking, Defect, and Noncompliance Orders") can change the requirements of a FMVSS.

Note that motor vehicles or items of motor vehicle equipment containing the safety defect or noncompliance cannot be sold pursuant to 49 U.S.C. § 30112 and 30120, while a manufacturer's petition for a determination that the defect or noncompliance is inconsequential with respect to motor vehicle safety is under consideration.

II. Recall Remedy

The remedy for the recall must involve both the inventory of recalled, but unsold vehicles or items of motor vehicle equipment, and the production of vehicles or items of motor vehicle equipment (if still produced). If the remedy provided for the product already distributed or sold is different than the production remedy, the production remedy must be fully described in the Defect/Noncompliance Information Report.

A manufacturer can remedy a defect or noncompliance by refunding, replacing, or repairing the product. Refunds are to be for the purchased price, less reasonable depreciation for use. Replacements are to be for a comparably valued product. When the product is remedied, the remedy must be timely and performed without charge. The performance and/or compliance of the remedy should be established prior to implementing the remedy campaign. The manufacturer must insure an effective parts supply so that the product can be remedied as soon as possible.

If the remedy involves a repair or replacement, the manufacturer is expected to have established not only the suitability of the remedy when the repair is made, but also the durability of the remedy when the vehicle or item of motor vehicle equipment is used.

Since the underlying purpose of a safety recall is to minimize the safety risk, it is important to maximize the effectiveness and timeliness of the recall. Vehicles and items of motor vehicle equipment that are subject to a recall, but not as yet sold to consumers, should be removed from sale as quickly as possible. As specified in 49 U.S.C. § 30112, 30116, and 30120, the recalled product cannot be sold until remedied.

With respect to motor vehicle recalls, manufacturers should encourage their franchise dealers to insure that the manufacturer's used vehicles have all applicable recall work completed before resale to the public.

It is suggested that for recalls in which the replacement or repair is critical, the manufacturer develop an easily visible marking/identification scheme for the repaired/replaced component or assembly. This will allow the manufacturer, dealer, purchaser, and owners to readily determine whether the recalled item has been replaced or repaired. Also, consideration should be given to packaging the corrected components/assemblies, as well as the remedial parts, distinctly to assist service personnel in insuring only correct parts are used.

Finally, many manufacturers use a gummed label to attach to the vehicle, or item of motor vehicle equipment, to denote that the recall remedy work was completed. Generally each label is color coded and contains the manufacturer's recall code, the dealer code for the dealer completing the recall, and the date of the recall. NHTSA would recommend that the label also include the manufacturer's toll-free telephone number, the NHTSA assigned recall identification number, and the NHTSA toll-free Hotline number (1-800- 424-9393).

ODI monitors the performance and effectiveness of all safety recalls and will take immediate action to correct any potential problems that arise during the conduct of the recall.

III. Public Notification and Remedy Campaign