By Robert L. Redding, Jr.
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A recent GAO report offers insight into the replacement crash parts industry and looks at the National Highway Traffic Safety Administration's ability to evaluate replacement crash parts. NHTSA faces reauthorization in this new Congress and the replacement crash parts issue will be part of this debate.
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The General Accounting Office (GAO) has completed a report titled “NHTSA's Ability to Detect and Recall Defective Replacement Crash Parts Is Limited.” The report is a result of the GAO's Report to Congress on Motor Vehicle Safety.
Motor vehicle safety issues are an ongoing concern of the Automotive Service Association (ASA), which is evident in ASA's past meetings with U.S. House and Senate Commerce Committee members to determine the best approach for improving the safety and quality of replacement crash parts. U.S. Rep. Ron Klink, a longtime member of the House Commerce Committee, requested the report from the GAO. Although Klink is no longer in the Congress, other congressional members asked to receive the report.
The GAO report offers much insight into the replacement crash parts industry. According to the GAO, there were six million automobile crashes in the past year, resulting in 40,000 deaths and $8 billion in damage. Approximately $1.2 billion of these costs were in aftermarket crash parts. The GAO points out, “Sixty cents out of every dollar in automobile insurance claims is spent on repairing collision damage to vehicles.” The GAO stated that 80 percent of the replacement crash parts are still provided by the original equipment manufacturers.
After establishing that NHTSA is responsible for “reducing accidents, deaths and injuries resulting from motor vehicle crashes,” the report highlights conflicting analyses.
The Motor Vehicle Safety Act is clear that NHTSA should be notified by manufacturers when parts are defective or when they do not comply with applicable motor vehicle safety standards. The act “prohibits the manufacturing, selling and importing of new vehicles and new vehicle equipment that do not comply with NHTSA's safety standards.” Each manufacturer is responsible for ensuring that its parts meet all applicable safety standards through a “self-certification” process.
We recall from the Firestone case last year that NHTSA's ability to identify defects relies on “screening the complaints.” Congress established new standards last year that require manufacturers to notify NHTSA of safety warnings and recalls in other countries in order to increase its ability to assimilate information.
The GAO found NHTSA woefully inadequate to evaluate these replacement crash parts with its current complaint system. Their database contains only a fraction of the complaints the manufacturers receive. NHTSA pursues 80 to 100 investigations a year. Manufacturers pursue another 200 or so defect recalls per year. Last year there were more than 385 recalls for safety defects.
The GAO reviewed seven aftermarket crash parts studies. They found these studies to be inconclusive. This is not surprising. The industry has debated for years the accuracy of various reports and studies by those with direct economic interest in the parts debate. This could not have been more evident in an ASA demonstration project conducted for NHTSA several years ago. One of NHTSA's top investigators pointed out the lack of safety data in the parts debate. Clearly much more time has been spent on reviewing the quality differences vs. safety of these parts.
One of the areas that is not as clear is NHTSA's responsibilities regarding the regulation of recycled airbags. The GAO reports, “The act's provisions that apply to aftermarket parts do not apply to recycled airbags because they are used rather than new equipment. For used vehicles, the Motor Vehicle Safety Act directs the secretary to prescribe safety performance standards for used motor vehicle inspection programs. The agency could elect to develop safety standards for occupant restraint systems, which might incorporate airbags.”
If a part is determined to be defective, NHTSA could be deterred from a recall by the lack of any indication as to the manufacturer of the part. As with Consumer Reports, the GAO pointed out that many of these parts are “invisible” to the complaint and recall system.
As mentioned earlier, last year's Firestone debate focused attention on NHTSA's scrutiny of vehicles for safety violations. NHTSA will be faced with reauthorization in this new Congress. The replacement crash parts issue will be part of this debate.
Conclusions
- NHTSA has the authority to regulate aftermarket crash parts, but has not developed safety standards.
- NHTSA has not determined that any aftermarket crash parts contain safety-related defects.
- NHTSA has a more limited authority to regulate the use of recycled airbags.
- NHTSA's complaint database and system for gathering information is inadequate.
Recommendations
- Identify additional sources of information to include in NHTSA's complaint database.
- Heighten consumers' awareness of NHTSA's complaint reporting system.
- Investigate the safety of using recycled airbag systems.
Congress has several options to remedy the findings of the report. These include addressing the current data collection process, eliminating the use of recycled airbags, and clarifying the Motor Vehicle Act of 1966 as to the U.S. Department of Transportation's authority to review all automotive parts. Another option is a national certification program for replacement crash parts or establishing some form of national consumer notice and consent program for the use of these parts.
This report has helped to clarify the issues in the debate. Policymakers can now move forward with unbiased information to base their decisions.
