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Automakers Must Notify Dealers of Serious Recalls

July 26, 2005
Under a new federal rule, an automaker must notify its dealers within three days of plans to recall a vehicle with a defect that poses "an immediate and substantial threat" to safety.

The notice will effectively stop sales of the recalled vehicle and reduce the number of consumers that otherwise would have to return to the dealership for repairs.

Under the rule, manufacturers can continue to notify dealers of less serious recalls of other vehicles within "a reasonable time."

The auto industry argued that stopping sales of cars and trucks with less serious defects could create a financial hardship, especially for dealers with large inventories.

In adopting the three-day rule, the National Highway Traffic Safety Administration (NHTSA) pointed out that manufacturers are generally quite responsible about promptly and voluntarily stopping the sales of vehicles that are thought to pose a serious threat.

The rule is a small concession to safety and consumer groups that long have argued for a definite timetable for notifying dealers of all safety recalls.

NHTSA in its public notice of the change emphasized that the agency still believes automakers have been responsible about prompt notices to dealers of serious defects.

NHTSA cited action in May by Mitsubishi Motors North America Inc. to stop sales of the 2006 Eclipse as soon as a major brake problem was found.

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