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Vehicle Recalls: Three Regulatory Concerns

by Leandro Giacobbi

As part of the interventions on road safety for the revision of the highway code recently approved by the Senate and, therefore, soon to come into force, there is art. 12 which regulates the recall campaigns implemented by vehicle manufacturing companies and which, in our opinion, was not sufficiently mentioned in the media comments following the approval of the legislation and which certainly deserves further investigation.

In fact, the art. 12 inserted in the Highway Code the new article 80-bis (Safety recall campaigns) which requires manufacturers to immediately adopt adequate corrective and information measures in relation to all the vehicles they have placed on the market or have registered or which have entered into circulation in the national territory or the European Union, for which it has been assessed the presence of a serious risk to the health or safety of people.

This obligation concerns the following categories of vehicles:

  • motor vehicles with at least four wheels used for the transport of passengers (category M);
  • motor vehicles with at least four wheels used for the transport of goods (category N);
  • the trailers (category O);

applying the provisions of Regulation (EU) 2018/858 which aims to:

  • increase the level of quality and independence for vehicle approval and related tests;
  • increase checks of vehicles already on the EU market;
  • strengthen the overall system with EU supervision.

In any case, following the logic of Regulation (EU) 2018/858, the new article 80-bis requires the manufacturer, 24 months after the start of the recall campaign for the adoption of corrective measuresif you find that the necessary adjustments have not yet been made to a vehicle, the obligation to enter the relevant data in the electronic listwhich will be established at the General Directorate for Motorization of the Department for Transport and Navigation of the Ministry of Infrastructure and Transport, and to ensure its updating.

In particular, in paragraph 4 of the art. 80-bis the legislator specifies that, within 180 days from the date of entry into force of the new legislation, a provision will be issued regulating the methods of access to the electronic list by authorized operators and consultation by police bodies and users.

In some ways, the new art. 80-bis of the Highway Code is undoubtedly positive because it fills a regulatory “void”, especially from the point of view of communication and transparency; in fact, once the electronic list has been created, it will be possible to know the vehicles that still have the defect, the subject of the recall campaign, two years after the start of the campaign itself. With these methods there will be the possibility of evaluating the result of the recall campaign, as an excessively high percentage of vehicles included in the electronic list will constitute “certain” proof that the measures adopted by the manufacturer were not suitable and/or sufficient. Furthermore, as part of vehicle sales processes, even between private individuals, the potential buyer will be able to verify whether the defect – known for the model he wants to purchase – has actually been eliminated.

What is not convincing about the new article 80-bis of the Highway Code. First of all, the limitation on vehicle categories which is certainly connected and due to the “parallel” EU legislation, but which, by excluding the motorcycle sector, automatically determines a different and unjustified treatment between “4-wheeler” customers and “2-wheeler” customers , if you consider that the fleet of motorcycles in circulation in Italy exceeds 7 million units.

Furthermore, a second critical reflection is the sanctioning measure for construction companies that fail to adopt corrective, information and data insertion and updating measures in the electronic list. Indeed, the pecuniary administrative sanction amounts to from euro 10,000 to euro 60,000 for each measure not adopted and it is clear that, compared to the turnover of car companies, it is very little, almost nothing. We remember that the legislator, when he wants to “hit” the “strong” subject for consumer protection, has already used very high financial penalties in the past; think of the sanction foreseen for the evasion of the obligation to contract by insurance companies regarding RCA which, if implemented with reference to certain territorial areas or individual categories of insured persons, amounts to a minimum of 1,000,000 euros to a maximum of 5,000,000 euros (art. 314 Private Insurance Code). Perhaps, more courage would have been needed, taking into account the sensitivity of the matter, given that the legislation requires the presence of a serious risk to the health or safety of people.

The third perplexity is the administrative pecuniary sanction that the art. 80-bis provides for those who circulate with a vehicle present in the electronic list. In fact, the penalty referred to in Article 80, paragraph 14 is applied, which is the one provided for when a vehicle is in circulation which has not been submitted to the required inspection and which amounts from €173 to €694. The legislator’s reasoning is that circulation, after 2 years from the start of the recall campaign with the consequent registration of the vehicle in the electronic list, is due to a deliberately non-compliant attitude of the owner of the vehicle itself. In truth, the largest safety recall in the automotive sector is currently underway regarding the possible risk of uncontrolled explosion of the airbag system, produced by the supplier Takata. Well, many consumers have complained about the lack of courtesy cars, therefore, it is not certain that the lack of control is always entirely attributable to the end customer. It is obvious that it is essential for social security to provide a sanction that encourages the owner of the vehicle to act with due reactivity, but perhaps the law could already provide an alternative to avoid having to resort to the competent judicial authority to obtain cancellation of the sanction .

Vehicle Recalls: Three Regulatory Concerns

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