Vehicle Recalls in Australia

Robert HoganGeneral Manager, Vehicle Safety Standards BranchAdministrator of Vehicle Standards

Working Party 29 Enforcement Working Group27 June 2013

EFWG-02-02

Vehicle Regulation in Australia

• Under the Motor Vehicle Standards Act 1989 (MVSA), the Australian (Federal) Government regulates:– uniform vehicle standards - called Australian Design Rules (ADRs) - to apply

to new vehicles when they begin to be used in transport in Australia, through a type approval system; and

– first supply to the market of used imported vehicles.

• The MVSA is administered by the Department of Infrastructure and Transport (the Department).

• In general, the in-service use and operations of vehicles are regulated by State and Territory governments.

Powers to address ADR non-compliances or other safety defects

• Under the MVSA, the Minister (or delegate) can “cancel, suspend or vary...approval to place identification plates on road vehicles”, effectively stopping supply of vehicles to the market, where vehicles are non-compliant with ADRs.

• While the Department has no direct powers to require recall, it also provides advice to the Australian Competition and Consumer Commission (ACCC) in respect of vehicle safety.

• Under the Australian Consumer Law (ACL), administered by the ACCC, recall can be required, where defects “will or may cause injury”

– The ADRs are designated safety standards and any non-compliance is potentially subject to recall.

– The Department also investigates other potential safety defects (and this could include product fitted after vehicles have been supplied to the market).

Departmental investigations

• Typically, the Department receives information of potential ADR non-compliances and other safety defects from public complaints, information provided by States and Territories based on roadworthiness inspections and/or the Department’s own inspection and audit activity.

– 165 new investigations were initiated in 2012.

• Cases are then referred to manufacturers and their responses are critically assessed, with meetings/briefings held if necessary.

• In a small number of cases, the Department encourages a recall, including in cases where it considers a ‘service campaign’ insufficient or there may be a delay (eg for a manufacturer to stock necessary parts).

– Should a manufacturer fail to act, the Department could refer the matter to the ACCC for consideration of appropriate action, including mandatory recall.

Manufacturer recalls• To date, a mandatory vehicle recall has never been required in

Australia.

• Between 2007 and 2012, vehicle manufacturers have initiated between 135 and 174 voluntary recalls a year

• Many of these are conducted under the Federal Chamber of Automotive Industries’ Code of Practice for Conduct of an Automotive Safety Recall.

• Recalls are notified to the Department and the ACCC and placed on the Government’s recall site: www.recalls.gov.au

• The large majority – around 95% – of recalls do not involve liaison with the Department prior to notification.

• However, the Department monitors the progress of all vehicle recalls.

Voluntary Recalls 2007-13

Recall Completion Rates

Year 2007 2008 2009 2010 2011 2012Recalls 172 158 174 147 142 135Target vehicles 599,834 319,694 404,100 551,561 446,088 681,482

Completion rates 84.4% 82.2% 88.7% 78.8% 74.6% 52.0%

Other Compliance and Enforcement Activity

• Recalls are part of a broader picture of compliance and enforcement activity in Australia, mostly related to national whole vehicle type approval.

• The Department has issued a National Compliance Strategy that sets this activity out in some detail.

• Elements of the Department’s approach include:– Single Uniform Type Inspections – vehicle inspections before models are approved– Conformity of Production audits and Test and Design Facility Inspections– Desk Top audits – reviewing component and system approval documents submitted by

manufacturers during type approval– Educational Workshops – on Australia’s type approval system and our expectations of industry

• The approach is risk based and includes consideration of factors such as the number of vehicles being supplied to the market, the type of vehicles being supplied and previous experience that the Department may have had with a manufacturer.

International Whole Vehicle Type Approval

• The move to IWVTA is a positive initiative but will need to be matched by commensurate safeguards (and risk assessment) in the system.

• The Department currently encounters ‘defective’ type approvals.• Safeguards will need to be reasonably articulated in amendments

to the 1958 Agreement.• The IWVTA informal group is addressing this.

– It will not be sufficient to rely on a “climate of trust” between approval authorities and manufacturers, as is currently stated in the 1958 Agreement (Appendix 2, 2.4).

References– Motor Vehicle Standards Act 1989: http://www.comlaw.gov.au/Details/C2012C00175

– The Australian Consumer Law :http://www.productsafety.gov.au/content/index.phtml/itemId/973455

– Australian Competition and Consumer Commission recalls site: www.recalls.gov.au

– The Department’s site on product safety recalls, including complaint form: http://www.infrastructure.gov.au/vehicles/complaints_recalls/recall_guidelines.aspx

– Federal Chamber of Automotive Industries’ Code of Practice for Conduct of an Automotive Safety Recall : http://www.fcai.com.au/publications/all/all/all/30/code-of-practice-for-conduct-of-an-automative-safety-recall

– The Department’s National Compliance Strategy <http://www.infrastructure.gov.au/roads/motor/standards/National_Compliance_Strategy/index.aspx>