WN&J Recommends Vehicle Suppliers Take Five Steps to Comply with New Federal Safety Regulations
DETROIT--March 31, 2003--As the National Highway Transportation Safety Administration finalizes new safety regulations, Warner Norcross & Judd LLP recommends that vehicle manufacturers and suppliers take five steps to ensure they are in compliance with federal reporting requirements.The first reports under these new early warning reporting requirements, which go into effect April 1, will be due to NHTSA on August 31. The November 2000 TREAD Act mandated that NHTSA establish these early warning requirements. The TREAD Act also gives NHTSA additional powers to increase its scrutiny over vehicle manufacturers and their suppliers in order to prevent future safety debacles, according to Steve Selander, a senior attorney in the Metro Detroit office of Warner Norcross & Judd LLP who concentrates his practice on NHTSA issues.
"These new requirements should assist NHTSA and the manufacturers in identifying safety defects before a small problem grows into a large safety issue," Selander said. "As this deadline approaches, vehicle manufacturers and their suppliers need to make sure they have all the proper protocols in place to track and report the safety information now required by TREAD.
"NHTSA has yet to rule on several proposed changes to the new reporting requirements that could affect the final reporting requirements. However, we recommend that companies prepare to track and report safety claims under the regulation as it currently stands, but still be prepared for possible changes in the coming weeks."
Selander recommends that vehicle manufacturers and their suppliers:
| -- | Determine where you fit into the reporting structure. There are some differences in the reporting requirements for companies manufacturing 500 or more vehicles, as well as manufacturers of tires and child restraint devices. |
| -- | Know and understand the reporting requirements. |
| -- | Know where in your company to get the information you need to report. Who in your company tracks safety data? What kind of data is gathered -- and what kind of data should you be gathering? |
| -- | Pinpoint changes you'll need to make in your internal reporting format. If you don't have a process in place, or you're not tracking the right kinds of data, you will need to establish a process that enables you to conform to NHTSA guidelines. Otherwise you will face severe financial penalties. |
| -- | Identify who's responsible for preparing and sending the report to the government. |
Under the early warning reporting requirements, all vehicle and equipment manufacturers must report the number of claims of deaths worldwide, based on the make, model and year of the vehicle, and by the allegedly defective component that caused the death. Vehicle manufacturers that produce more than 500 vehicles, as well as manufacturers of tires and child restraint devices, are also required to report certain warranty claims, consumer complaints, injury and property damage claims, and field reports.
All vehicle and equipment manufacturers must provide NHTSA with copies of notices, bulletins, customer satisfaction campaigns, consumer advisories and other communications sent to more than one customer in the United States on a monthly basis. In addition, both vehicle and equipment manufacturers are required to report any foreign safety recalls or other safety campaigns to NHTSA within five days of the decision, if the manufacturer sells a similar vehicle or component in the United States.
"While many passenger car manufacturers already have a process in place to track safety defects, many of their suppliers do not. It is critical that the suppliers put an effective reporting process in place immediately," Selander said. "Manufacturers of other vehicles -- such as recreational vehicles and fire trucks, motorcycles and trailers -- and their suppliers must also establish a reporting process to meet this new regulation."
About Warner Norcross & Judd
Warner Norcross & Judd LLP is the largest law firm in West Michigan and one of Michigan's leading providers of legal services with more than 185 attorneys in five Michigan offices: Grand Rapids, Holland, Metro Detroit, Muskegon and Southeast Kent County. Warner Norcross has been recognized in America's Greatest Places to Work with a Law Degree. Nearly 40 percent of the Firm's partners are listed in the 2003-2004 edition of The Best Lawyers in America. The Firm represents local, statewide, regional, national and international clients in all areas of business and civil law.