Tag Archives: Recalls

FAST Act Recall Pilot Program Gets Underway in Maryland

Recall
One of the more bedeviling problems for the automotive industry (and for manufacturers in general) is how to alert consumers to pending recalls, and getting consumers to comply with those recalls.  According to NHTSA, only 70% of recalled vehicles are repaired, even though such recalls are frequently safety-sensitive and repairs are free to consumers.… Continue reading this entry

Stout Issues Third Annual Warranty and Recall Report

recall
By Guest Authors:  Neil Steinkamp and Robert Levine of Stout Risius Ross, LLC Massive automotive recalls continue to grab headlines and raise concerns industry-wide. Recalls of light vehicles topped 50 million units in 2016, representing the third consecutive year of elevated – and record setting – automotive recall activity. Stout’s third annual Automotive Warranty & Recall Report provides a … Continue reading this entry

Will Autonomous Vehicles Mean Fewer Lawsuits?

Full disclosure # 1: I, the author of this blog post, am a trial lawyer. Full disclosure # 2: The law firm that allows the publication of this blog post has many, many, many more trial lawyers. Without disputes that could go to trial, we all need to find more work. Of course, this also … Continue reading this entry

NHTSA Issues Recommended Best Practices for Protective Orders and Settlement Agreements in Private Litigation

U.S. Supreme Court Expands Scope of Whistleblower Protections
The National Highway Traffic Safety Administration (NHTSA) last week issued “Enforcement Guidance Bulletin 2015-01: Recommended Best Practices for Protective Orders and Settlement Agreements in Civil Litigation,” which is intended to discourage the use of confidentiality provisions that present a potential barrier to the flow of safety-related information to the agency.… Continue reading this entry

China Auto Regulatory Trends 2016: New-Energy, Materials Restrictions, Recalls and Emissions Figure Prominently

China has launched or announced a significant number of regulatory initiatives in the automotive sector over the first months of 2016. I have selected a number of regulatory initiatives representing such trends, below, from my work on China compliance issues and discussions with relevant regulatory authorities.… Continue reading this entry

Top 2016 Litigation Issues Facing the Auto Supply Chain

Nobody likes a fight. Well, almost nobody. Trial lawyers, boxers, and MMA fighters might be the only ones. But, in business, the occasional fight is pretty much inevitable. What fights do we foresee for those in the auto industry in 2016? Well, we see the potential for some in the supply chain in one form … Continue reading this entry

Foley Hosts Breakfast Program at 2016 Auto Show

Foley & Lardner LLP (“Foley”) hosted a breakfast program, “Top Issues Facing the Automotive Industry in 2016,” held in conjunction with the North American International Auto Show on Wednesday, January 13, 2016 at the Detroit Athletic Club. The Foley program featured industry leaders Karl Heimer, Founding Partner of AutoImmune Inc., Praveen Chandrasekar, Consulting & Research … Continue reading this entry

NHTSA Announces Record Setting Civil Penalty in Consent Order With Chrysler

In 2014, NHTSA collected a record setting amount of civil penalties. For 2015, NHTSA may be on pace to exceed last year’s record. On July 26, 2015, NHTSA announced a $105 million civil penalty against FCA US LLC, the former Chrysler Group. As those who follow NHTSA have come to expect, the settlement came in … Continue reading this entry

A Study of Recall Completion Rates

This post was written by special guest authors Neil Steinkamp, Managing Director, and  Jake Reed, Manager, from Stout Risius Ross. There has been much attention recently regarding the efforts made to complete recalls in a timely and effective manner. Significant, high-profile recalls have garnered media attention as well as regulatory scrutiny as OEMs have faced challenges … Continue reading this entry

DOT Issues Scathing Internal Report of NHTSA’s Defect Investigation Processes

What’s Next for Conflict Minerals Rules After D.C. Circuit Decision?
In the wake of GM’s ignition-switch, the Secretary of Transportation, Anthony R. Foxx, directed an investigation into NHTSA’s defect investigation policies and procedures. Specifically, Secretary Foxx requested that the U.S. Department of Transportation’s Office of the Inspector General (OIG) assess NHTSA’s Office of Defects Investigation’s (ODI) procedures for (1) collecting vehicle safety data, (2) analyzing … Continue reading this entry

NHTSA Seeks to Push Beyond the “New Normal” and into the “New Paradigm”

In recent years, the National Highway Traffic Safety Administration (NHTSA) has received increased public and Congressional scrutiny stemming from high-profile safety defects, such as the Toyota unintended-acceleration issues and last year’s GM ignition-switch issue. On June 5, 2015, NHTSA released two reports – the agency’s “Path Forward” and its “Workforce Assessment: The Future of NHTSA’s … Continue reading this entry

The Takata Consent Order – Here's What You Need to Know

As is well known by now, TK Holdings Inc. – Takata – has entered a Consent Order with the National Highway Traffic Safety Administration (“NHTSA”). The details and latest information on the Takata recall can be found online through NTHSA. While the news has focused on the expansion of the recall, and mentioned the Consent Order, major … Continue reading this entry

Navigating Product Recalls

Recalls are in the news as much as ever. The number of units recalled in 2014 eclipsed the total from 2010-2013, combined. Takata’s recall is expanding to 34 million vehicles as the company enters a Consent Decree with NHTSA. Thus, 2015 will likely exceed 2014. Companies throughout the automotive supply chain face more challenges than ever before in … Continue reading this entry

Malcolm Gladwell Re-Thinks Automotive Safety in "The New Yorker"

OSHA Turns Its Sights on Auto Suppliers
Recent high-profile product liability lawsuits against automotive manufacturers have captured national attention. These cases have led to a renewed and heightened focus on automotive safety and, specifically, the guidelines and procedures used by automotive manufactures to determine whether to initiate a recall.… Continue reading this entry

Suppliers Should Position Themselves to Mitigate Recall and Warranty Claims in 2015 and Beyond

In 2014, the automotive industry waded through numerous recalls, including recalls against component manufacturers. These recalls include multi-billion dollar recalls spanning multiple vehicle manufacturers. In 2015, the automotive industry will face continued focus on product recalls, warranty issues, and safety procedures. This year, automotive companies should mitigate their exposure to recall and warranty claims by, … Continue reading this entry

What's Next for NHTSA and Automotive Safety?

What’s Next for Conflict Minerals Rules After D.C. Circuit Decision?
This past year, we witnessed the GM Ignition Switch investigation, which involved massive recalls, multiple Congressional hearings, and civil penalties; the ongoing Takata airbag inflator investigation and recalls (and more Congressional hearings); multiple legislative proposals seeking to increase the civil penalty ceiling and expand NHTSA’s enforcement authority; and an unprecedented number of other recalls, civil … Continue reading this entry

Top Legal Issues Facing Suppliers in 2015

Foley’s Automotive Industry Team has prepared this overview of the major trends we see affecting automotive suppliers this year. While not all legal risk can be anticipated, companies that are aware of litigation, enforcement, and regulatory trends will be one step ahead of their competition. Top issues include:… Continue reading this entry

Suppliers Remain Cautiously Optimistic per OESA Survey

Suppliers Get Ready For Your Recalls
OESA recently released its Automotive Supplier Barometer for November 2014. The November Supplier barometer focused on Human Resources issues related to staffing benefits and training. The Supplier Sentiment Index (SSI) is the same as the September level, at 56, reflecting a positive outlook for suppliers. However, as the OESA notes, the warranty/recall issues in the … Continue reading this entry

Stop Product Liability Claims Now!

OSHA Turns Its Sights on Auto Suppliers
More and more recalls mean more and more product liability claims. Even without recalls, for companies in the Automotive Industry product liability claims are a way of life. So, what do you do to prevent such claims? Knowing that they are inevitable, what do you do to make sure that their impact is minimized? When thinking of product … Continue reading this entry

A Busy Year for NHTSA Enforcement and Rulemaking

This promises to be one of NHTSA’s busiest years for enforcement and rulemaking activity. NHTSA is expected to continue its aggressive enforcement, sparked by GM’s massive ignition switch recall and the flood of follow-on recalls by GM and other manufacturers. And the agency is moving forward with research and possible rulemaking on advanced crash avoidance … Continue reading this entry

Timing May Be Everything in Breach of Warranty Claims

In the wake of the recent recalls and warranty campaigns, suppliers should bear in mind the threshold statute of limitations defense that they may have to any attempts by the OEMs to recover against them for costs for issues that the OEMs may have known about for years, but failed to act upon. An OEM seeking … Continue reading this entry

Suppliers Positive, Again, per OESA Survey

OESA recently released its Automotive Supplier Barometer for May 2014, Focus on Production, Technology, Globalization. Suppliers continue to hum along in their positive attitudes, sending OESA’s May Supplier Sentiment Index (SSI) to 59, a light increase from that of 56 in March 2014. In fact, the SSI has been on the positive side of the spectrum … Continue reading this entry

Automotive Suppliers Get Ready for Your Recalls

It is impossible to be in the Automotive Industry and not be involved in, aware of, concerned about or otherwise thinking about recalls. But as a supplier, what are you doing now to be ready for what many feel is the inevitable call from your customers or the government? What are you doing to prepare? … Continue reading this entry

Shift To Modular Platforms Raises New Issues for Manufacturers And Suppliers

One way in which next-generation manufacturing is impacting the automotive industry is the movement toward modular architecture. These designs use common underpinnings for various models across a variety of vehicle segments, minimizing the variation between parts needed for these models. Volkswagen says their MQB architecture will eventually underpin roughly 40 models, ranging from subcompact hatchbacks like the … Continue reading this entry