This number is expected to triple by the year 2015.
This influx of product creates an intense challenge for the National Highway Traffic Safety Administration (NHTSA), which acts as a watchdog to oversee the safety of the myriad automotive related products flowing into the U.S. every day. Since NHTSA was founded in 1966, the administration has had more than 10,000 recalls involving motor vehicles. The recalls included more than 400 million vehicles and more than 162,000 motor vehicle products.
In a presentation yesterday at AAPEX, Dan Smith, NHTSA’s associate administrator for enforcement, gave aftermarket manufacturers, wholesalers and distributors an overview of NHTSA’s role in the importation of automotive products, the civil and regulatory issues related to importing and what the industry can do to protect itself from potential problems. NHTSA is now working with organizations such as the Automotive Aftermarket Suppliers Association (AASA) to deal with the current importing trends. In conjunction with Smith’s presentation yesterday, AASA issued a special report entitled “Direct Importing: Do the Risks Outweigh the Reward?”
This year, among the disturbing amount of product recalls making headlines, was one in particular that should give the automotive aftermarket pause. In June, Foreign Tire Sales (FTS), a U.S. distributor of Chinese tires, recalled 450,000 tires that were potentially defective. What many in the industry may not have realized prior to this incident was the fact that currently according to U.S. government regulations, importers are considered to be the ‘manufacturer’ of the product, opening them up to all related liabilities.
These kinds of situations will likely only increase, according to Smith, as the import market continues to grow. In his presentation, Smith noted that in 2006, 46% of car and truck tires were imported; 10 years ago it was only 19%. Of tire imports into the U.S. in 2006, 23% were from China, up 6% from 2000.
