Canadian Legislative Issues


Safety Recalls Affect Canadian Vehicles
 
Technological advances and greater tests of vehicle safety have led to a greater frequency of vehicle recalls in recent years. Most recently Takata, a Japanese automotive parts company, declared that 14 million air bag inflators were defective. This has caused over 12 million vehicles from eight different automakers in the United States to be recalled. This has spilled into Canada, with Fiat Chrysler recently announcing that they would be recalling 400,000 vehicles for the same problem. Unfortunately for automakers, the first phase of this recall is part of a larger process that will extend until 2019 and will declare 40 million airbag inflators defective. This will involve 17 manufacturers worldwide.
 
This recall, as well as the multiple others that have been announced in 2016, does not only represent negative forces at work in the industry, though they are often portrayed that way in the media. Through these recalls, many that are related to passenger safety, consumers have much to gain. Car manufacturers are now performing more rigorous tests to ensure the safety of their vehicles. This results in more cause recalls, but it also gains them more credibility in producing safe and reliable vehicles. Lawsuits can also be avoided, but truly the main beneficiary of recalls are not the manufacturers, but the consumers.
 
With the amount of recalls increasing every year, the Canadian Government has stepped into the process. Despite the Canadian Senate having had a wide variety of negative media attention over the past year, which culminated in some political parties and commentators calling for its complete abolishment, it recently introduced its first government Bill. The Bill, known as the Strengthening Motor Vehicle Safety for Canadians Act, would allow the Minister of Transport to order automakers to issue recalls and force them to repair vehicles at no cost to the owner.

This would put Canadian laws more in line with what is already happening in the U.S., where the National Highway Traffic Safety Administration has the power to issue recalls on vehicles it deems hazardous to consumers due to a defect.  Although many vehicle manufacturers have recalls on a constant basis, this is a positive step for both countries in harmonizing policies and regulations which can benefit cross-border automakers and consumers alike.
 
Recalls will continue to be a reality of the car industry, and despite the inconvenience they impose, they represent an important step towards greater safety and consumer satisfaction with the products the industry offers. 

NAFA Fleet Management Association
http://www.nafa.org/