New Zealand airbag recall: Are faulty imports still sneaking in?

Thursday, 6 October 2016

Are used Japanese vehicles being imported into New Zealand despite the fact they are part of the worldwide airbags recall? The used car importers say no - but the new car industry isn't so sure.

The Motor Industry Association - which represents the new vehicle industry - is urgently seeking clarification from the New Zealand Transport Agency on whether this is happening and if it is illegal.

But the Imported Motor Vehicle Industry Association says it shouldn't be happening, because agents in Japan are being asked to check used cars against a list of recalled vehicles prior to their purchase for export to New Zealand.

'We can't say that all the used cars being imported into New Zealand aren't subject to the airbags recall - there's about 12,000 of them arriving every month and in some cases there possibly will be human error - but the IMVIA members do have this strict checking process,' says chief executive David Vincent.

**READ MORE:

* Recall website fails to cope with volume of traffic caused by airbag failures

* Some new cars still include defective Takata airbags

* Takata: Worst case airbag recall would cost US$24 billion

* Takata airbag recall: What New Zealanders need to know

* Takata airbag recall: Airbags in some NZ cars won't work because they aren't connected**

'No New Zealand importer wants to be left in limbo with such cars. No dealer wants to be subject to the wrath of a customer.'

Meanwhile the NZTA says it is not illegal for vehicles that are subject to a manufacturer's recall to be sold or driven, because they do not pose an immediate risk to safety.

But the MTA disputes that. It says while that might be true of vehicles already here, it might not be true of the vehicles when they are purchased in Japan for shipping to New Zealand.

'Our specific question is this,' MIA chief executive officer David Crawford says.

'Where a recall has been notified overseas, what is the legal obligation of the party buying a used vehicle for export to New Zealand if the recall is still open?'

'Our belief is that a recall on a vehicle needs to be closed out in the market the vehicle is sourced from, before it can come into the country.'  

The debate is the latest New Zealand development in the worldwide recall of up to100 million vehicles because of potentially faulty airbag inflators that could cause injury or death to those inside the vehicle.

The recall also involves up to 300,000 vehicles in New Zealand that have been either purchased new or imported used from Japan.

On Tuesday the NZTA admitted it had 'recently' been made aware that in 2015 some manufacturers in Japan began offering customers the option of disabling front passenger airbags, in response to public concerns about wait times for replacement airbags as part of the global recall.

These modifications carried out in Japan involved disconnecting the airbags and placing an extra component into the vehicle's electronics so the vehicle's self-diagnostic systems could register the disabled airbag as functional.

It's now known that many of these vehicles have made it into New Zealand.

This has led the NZTA to immediately amend the entry certification inspection requirements for used vehicles imported from Japan.

These vehicles are now required to undergo a visual check of the airbag connection - even though in most cases this will require physically dismantling part of the vehicle.

The IMVIA's Vincent says this is the bigger problem.

'So many millions of cars are involved in the recall that Takata simply can't supply replacement parts fast enough. So in Japan some vehicles are having their passenger airbags deactivated.

'When that happens stickers are required to be placed on sun visors or seatbelts to warn those aboard that the airbag is not working. The concern is that unscrupulous people in Japan are removing those stickers.

'That is why we consider it so important to not only check cars against a master list, but to have the more stringent inspection requirements in New Zealand.' 

But Crawford fears this still might not stem the flow of vehicles imported to New Zealand even though they are part of the recall.

'Our understanding is that once a vehicle has become the subject to a recall, it is illegal to on-sell the vehicle until the recall has been closed out,' he says.

'The very fact that some cars are arriving in New Zealand with the disabled front passenger airbags means the recalls on those vehicles remain open. Our understanding is that the recalls on other vehicles imported here also remain open.' 

The NZTA confirms it has had ongoing discussions with the MIA with respect to these issues, and they have sought clarification on the responsibilities of importers and distributors in relation to vehicles which are subject to a manufacturer's  recall.

'To clarify - it is not illegal for vehicles subject to recall to be sold or driven. This is because vehicles which are subject to a manufacturer's recall do not pose an immediate risk to safety,' says the spokesperson.

When safety issues with vehicles are identified they are addressed in one of three ways, he adds:

*  A service campaign – the issue is minor and is not safety-critical, so the issue can be dealt with as part of normal vehicle servicing.

* A recall – there are safety ramifications but no immediate risk to safety.

* Require vehicles be taken off the road – where the risk is serious enough that vehicles should be required to be taken off the road.

'The Takata airbag issue is being addressed as a recall,' he says.

However, the NZTA's own website strongly advise importers to check whether vehicles are subject to a safety recall.

'It is your legal responsibility to ensure that vehicles you import are cleared of any recalls before arriving in New Zealand,' it says.