Imports Complicate Tire Recall Process
We’re all vaguely familiar with the recall process, even if we’ve never participated. You get a notice, you have the recalled product repaired or replaced. What’s so complex about that process? What if the product, like the defective Compass Telluride tire, is manufactured in another country for sale in the U.S.? Now, we get complicated.
The regulations governing recalls do not take into consideration an American importer of foreign goods that does not have the resources to conduct the recall. In the case of Foreign Tire Sales and the defective light truck tires manufactured by Hangzhou Rubber Company, the National Highway Traffic Safety Administration offered the company no sympathy, ordering FTS to file its remedy plan.
FTS appealed to the NHTSA for assistance in conducting the recall of up to 450,000 defective tires, claiming the strong possibility of bankruptcy if it had to absorb the cost of replacing the tires sold under the names Westlake, Telluride, Compass and YKS. FTS had filed lawsuit against the Chinese manufacturer for unspecified damages and to order the manufacturer to conduct the recall and supply replacements made to the original specifications. Hangzhou initially admitted leaving out or reducing the gum strip designed to ensure belt integrity, then claimed no gum strip was included in FTS’ design specifications for the product. The chances of FTS’ success in the suit are slim. The Chinese government’s General Administration of Quality Supervision, Inspection and Quarantine conducted tests on the tires and issued a statement that they met U.S. safety standards.
FTS’ solution was to announce a unique first-come, first-served recall, reducing the number of recalled tires from 450,000 to 250,000. Consumer tires would be replaced until the company’s $8 to $9 million set aside for the recall ran out. It was speculated, based on a 30-percent return rate, that the funds would cover the company’s costs.
If you have been involved in a tire-related accident, contact us using the form on the right and we’ll help you locate an attorney.
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