| RECALLS
Q. What is the recall system?
A. The recall system identifies defective automobiles that are
already on the road, by
notifying car owners about how to get them fixed.
Q. What defects does the recall process include?
A. Generally, it includes defects that affect the car's safety,
cause it to fall below federal
safety standards, or both, and that are common to a group of the same
kind of cars or
equipment. The defect can be in performance, construction, components,
or materials
found in the car or in related equipment, such as child safety seats.
Q. How does the recall process begin?
A. Many recalls result from the manufacturer's response to owner
complaints. However,
the National Highway Traffic Safety Administration (NHTSA) influences
and orders
many of the recalls. The NHTSA receives safety-related complaints through
letters and its
telephone toll-free hotline. (This hotline number is listed at the end
of this chapter, under
"Where to Get More Information.") When the NHTSA registers enough
complaints,
NHTSA engineers perform an engineering analysis. Then the NHTSA engineers
contact
the automobile's manufacturer. The manufacturer must either remedy the
defect or launch
its own defect investigation.
Q. How is a defect investigation conducted by the automobile's
manufacturer?
A. It begins with a press release, and opening a public file
to receive comments and
information. If this confirms the defect and the manufacturer still will
not voluntarily
recall the vehicle, agency engineers recommend an initial determination
of a safety defect
to the NHTSA administrator. If approved, this results in a public hearing
and notification
to the manufacturer of the basis for the finding. After the hearing, the
NHTSA decides if a
final defect determination and recall is proper. Occasionally, the NHTSA
administrator
first seeks the transportation secretary's approval.
What Happens If the NHTSA Orders a Recall
If the manufacturer refuses to obey voluntarily and challenges the
recall in court, it faces a
huge fine unless the court overturns the NHTSA order. Once the recall
campaign begins,
the NHTSA assigns a campaign number and file. During the campaign's
first six quarters
(year and a half), the manufacturer must report its completion rate
based on the number of
vehicles actually repaired. The NHTSA may verify these figures. |
Q. How effective are recall campaigns?
A. Usually about 60 percent of the vehicles targeted by the recall
receive repairs.
Q. Who pays for the recall the automobile's manufacturer or
the owners?
A. The manufacturer must remedy the defect for free. This does
not apply when the first
buyer bought the car more than eight years earlier. In comparison, the
standard for tires is
three years.
Q. What must the manufacturer do?
A. The manufacturer has the option of repairing the defect, replacing
the car, or refunding
the purchase price. If it refunds the money, the manufacturer may deduct
a certain amount
for depreciation (loss in value). The manufacturer reimburses the dealer
who makes the
repairs. If the manufacturer chooses to repair the defect, it must do
so within a reasonable
time. Otherwise the manufacturer must replace the vehicle or refund the
purchase price.
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to Safety Recalls |