THE BASE FOR A SUCCESSFUL INTRO IN USAThe 6th International Symposium on Foreign Automotive Market Access System
and Technical Standard & Regulation
Nanning, Guangxi October 24, 2018
SELF CERTIFICATION
The manufacturer himself is responsible for that the vehicles fulfills all US standards/requirements
You get no guidance
You have to decide yourself how to fulfil the standards/requirements
Subpart B
FMVSS 101FMVSS 102
FMVSS 103
FMVSS 104
FMVSS 105
FMVSS 106FMVSS 108
FMVSS 110
FMVSS 111
Controls and displayTransmission shift position, starter interlock, transmission braking effectWindshield defrosting/defogging systemWindshield wiping and washing systemHydraulic and electric brake systemBrake hosesLamps, reflecting device and associated equipmentTire selection and rims
Rear visibility
FMVSS 113FMVSS 114
FMVSS 116FMVSS 118
FMVSS 124FMVSS 126FMVSS 135FMVSS 138FMVSS 139
FMVSS 141
(FMVSS 150)
Hood latch systemTheft protection and rollaway preventionMotor vehicle brake fluidPower operated windows, partition and roof panel systemsAccelerator control systemElectronic stability control systemLight vehicle brake systemTire pressure monitoring systemNew pneumatic tires for light vehiclesMinimum sound level for hybrid and electric vehiclesV2V
CODE OF FEDERAL REGULATIONS TITLE 49, PART 571.xxx
FMVSS 201
FMVSS 202aFMVSS 203
FMVSS 204
FMVSS 205FMVSS 206
FMVSS 207FMVSS 208FMVSS 209FMVSS 210
Occupant protection in interior impactHead restraintsImpact protection for the driver from the steering control systemSteering control rearward displacementGlazing materialsDoor locks and door retention componentsSeating systemsOccupant crash protectionSeat belt assembliesSeat belt assembly anchorages
FMVSS 212FMVSS 213FMVSS 214FMVSS 216aFMVSS 219FMVSS 225FMVSS 226FMVSS 301FMVSS 302
FMVSS 303FMVSS 304FMVSS 305
FMVSS 401
Windshield mountingChild restraint systemSide impact protectionRoof crush resistanceWindshield zone intrusionChild seat anchorage systemEjection mitigationFuel system integrityFlammability of interior materialsFuel system integrity for CNGCNG container fuel integrityElectric powered vehicles, electrolyte spillage and electric shock protectionInterior trunk release (front and/or rear)
CODE OF FEDERAL REGULATIONS TITLE 49, PART 571.xxx
Examples of the wide variety of different regulation parts:
523 Vehicle classification (PC, passenger car)531 Passenger car average fuel economy standards (CAFE)541-543 Federal motor vehicle theft prevention standard (VIN marking on parts/exemptions)563 Event data recorder (EDR)565 Vehicle identification number (VIN)567 Certification regulation (Certification label and manufacturer plate)574 Tire identification and record keeping581 Bumper standard (front and rear low speed collision)583 Automobile Parts Content Labeling
CODE OF FEDERAL REGULATIONS TITLE 49, PART 5xx
COMPONENT APPROVALS
Safety belts FMVSS 209
Tires DOT
Electrical/electronic equipments
Light sourses SAE/DOT
Interior materials FMVSS 302
Glasses DOT
Signal horn ECE R28
Brake hoses FMVSS 106
Require test reports from your suppliers
”This vehicle conforms to all applicable Federal Motor Veihcle Standards in effect on the date of manufacture”
(Code of Federal Regulation Title 49, Part 567)
COMPLIANCE LABEL
LACK OF FMVSS
Vehicle noise ECE R51-02 or FMCSA Part 325
Speedometer ECE R39-01 or FMCSA Part 393.82
Signal horn ECE R28-00 or FMCSA Part 393.
Steering ECE R79-02
Odometer tampering
ADDITIONAL
- State of the art- Due care- Reasonable foreseeable misuse- Warnings- Level of functional safety ISO 26262
To fulfil all applicable standards/requirements is just the lowest level
>65.000 USD
50.000 USD
30.000 USD
<20.000 USD
The vehicle should not be “unreasonable unsafe”
ENGINES
COMBUSTION
To start sales in the US you need an EPA/CARB emission certificate (Code of Federal Regulation Title 40 Part 86.101, CCR Title 13).
The procedure is comprehensive, complicated, time consuming (min 18 months) and expensive.
Test program:
CARB/EPAEVAPOBD IIIN USE compliance AECD, Auxiliary Emission Control Device document Deterioration factor, DFHigh AltitudeCAFE/CO2 (Part 531)(Air conditioner (Green House Gases GHG Code of Federal Regulations Title 40, Part 600))
BATTERY ELECTRIC
Battery electric vehicle range and consumption Code of Federal Regulations Title 40 Part 600.210 and 600.311 using test spec. SAE J1634
MISCELANEOUS
State specific requirements.
Equipment placed in the car is the responsibility of the manufacturer (for example vehicle jack)
ENVIRONMENT
End of life (recycling)
RoHS (no Federal law, state law EWRA in California)
WEEE (no federal law, state law EWRA in California)
Hazardouz materials Code of Federal Regulations Title 49 Part 100-185 (black list)
CONCEQUENSES OF NON-COMPLIANCE
Responding to Information Requests (IR) from NHTSA (5 days)
Show the test reports which we claim form the basis for compliance
NON COMPLIANCE COMPLIANCE
Alt 1 RecallAlt 2 Recall + civil penalties max $xxxx per carAlt 3 Recall + civil penalties + ciminal penalties (up to 15 years in prison)
CONSEQUENSES OF NON-COMPLIANCE
‐ Stop production until a fix is in place
‐ Recall and remedy
‐ Negative publicity
‐ Consumer dissatisfaction
. Lawsuit possible – ”make me a mllionare”
‐ Penalties possible if NHTSA discover the Non Compliance
COMPLIANCE MARGINS
- Design (tolerances)
- Testing (different testing laboratories could lead to different results)
- Build (assembly tolerances, processes at subsuppliers)
”Every single car must comply with all applicable standards”
You could argue ”Single case”
20%
x
REPORTING
PART 573.6 Defect / Non compliance report, 5 working days
PART 573.7 Quarterly Reporting (Reporting following a campaign)
PART 573.8 List of purchasers, owners, dealers, distributors, lessors & lessees
PART 573.11 Prohibition on Sale or Lease
PART 576 Record Retention – 10 years (F.A.S.T Act)(claims, complaints etc. re: alleged & proven defects & malfunctions that may be related to safety)
PART 579 Information & Communications About Potential Defects-General-Safety Recalls & Campaigns in foreign countries & Substantially Similar -TREAD ACT - Early Warning Reporting (EWR)
Defect Reporting EPA (Title 40, Chap. I.(C) Part 85(T) & CARB (§2146 13 CA ADC)
CAMPAIGN CLASSIFICATION
- Product Safety Campaign
- Non Compliance Campaign
- Product Emission Campaign
- Customer Satisfaction Campaign
- Service Campaign
- Special Policy Campaign
A Guide for the Reporting, Notification, and Remedy of Motor Vehicle and Motor Vehicle Equipment in Accordance with Title 49 of the United States Code, Chapter 301 and Supporting Federal Regulations
https://www-odi.nhtsa.dot.gov/recalls/documents/recompendium.pdf
Prepared by the
Recall Management DivisionOffice of Defects Investigation National Highway Traffic Safety Administration U.S. Department of Transportation
FAX: (202) 366-7882 Email: [email protected]
SAFETY RECALL COMPENDIUM
Are the American public waiting for the Chinese car manufacturers???
Probably not, but the American lawyers are!!!
PRODUCT LIABILITY
PRODUCT LIABILITY
There are 3 basic principles for Product Liability
- Negligence (carelessness)
- Warranties/representations
- Strict liability in tort - Design defect- Manufacturing defect- Failure to warn- Crashwortiness (the ability of a structure to protect its occupants during an impact)
https://www.mcguirewoods.com/news‐resources/publications/us‐automotive‐products‐liability.pdf
USAPopulation: 325 million peopleMiddle class: approx. 225 million people
CHINAPopulation: 1.400 million peopleMiddle class: approx. 300 million people
DEEP POCKET PHILOSOPHY
”JUST LOOKING FOR AN EXCUSE TO SUE YOU!!!!!”
All accidents could theorethically lead to lawsuit/litigation.
LITIGATION/LAWSUITS ‐ BIG BUSINESS
PLAINTIFF
The plaintiff’s lawyer will look for evidence against us.
He might even come and visit us
All could be seen as evidence
Test reports, drawings, specifications, e-mails, advertising, ………….
DEFENDANT
The defendant (you) have to look for ALL (test reports, certificates, ….) which could prove that you have done correct and not been careless or lied.
DISCOVERY
BE CAREFUL WITH WHAT YOU ARE SAYING
”Everything said by a company about its products may cause moredamages to the company than by possible defective products”
IN COURT
If we are called to court:‐ Be honest‐ Be clear in our saying‐ Stay in your profession‐ Don’t start arguing‐ Stay calm‐ Use “I don’t remember”‐ Be sympathetic‐ Act correct‐ Present our view
‐ Build confidence and trust‐ Be factual‐ Show empathy‐ Be strategic‐ ….‐ …
The jury is representing an average of the American people
Max 12 personsIt is a citizen dutyYou get some payment
Why is this important?
- NHTSA will interpret your writing (misunderstanding, investigation, additional testing, ………)
- Compliance testing at test institutes (misunderstanding of how the test has been performed, tolerances)
- Lawyers will focus on company’s written documents
- Lawyers will interpret documents in a manner that best suits their purposes
- Lawyers will seek to take advantage of documents being written by person whose native language is not English
DOCUMENT AND REPORT WRITING
‐ Language (write the reports in English from start. Translations could raise questions and misunderstanding.)‐ Be accurate‐ Be factual‐ Be informative‐ Be objective‐ Avoid ambiguity (uncertainty, unclear, different interpretations)‐ Avoid generalizations‐ Consider how documents be interpreted by people from outside ‐ Use common sense and judgement‐ Close the loop effectively (“smoking gun”)‐ Words to avoid (dangerous words)‐ Split of test reports in a development/research report and a certification report might be needed
Note: Never write cost reduction versus safety!! Better write easier assembling or ………Consider all test reports as official.
All test reports should be checked and approved by an authorized person inside your company.
HOW TO WRITE TEST REPORTS
WARNING LABELS
CAUTION Indicates a potential hazardous situation which, if noticed, may result in minor or moderateinjury. It may also be used to alert against unsafe practises.The word CAUTION in black letters on a yellow background
WARNING Indicates a potential hazardous situation which, if not avoided, could result in death orserious injury.The word WARNING in black letters on an orange background
DANGER Indicates an imminantly hazardous situation which, if not avoided, will result in death or serious injury.This signal word is limited to the most extreme situations.The word DANGER in white on a red background
Laws governing the rights of purchasers of new and used motor vehicles that do notfunction properly and which have to be returned repeatedly to the dealer for repairs.
Lemon laws typically provide consumer protection for owners of new cars, trucks, and vans. A significant minority of states also provide coverage for leased vehicles. Many states specify coverage for one year from delivery or for the written Warranty period, whichever is shorter; a handful of states mandate coverage for the shorter of two years or 24,000 miles.
Lemon laws cover only substantial defects, meaning defects that substantially impair the use, value, or safety of the vehicle. If a defect is safety related, the manufacturer is usually allowed just one chance to fix it before the owner may invoke the lemon law; if a defect impairs the use or value of a vehicle, the manufacturer is usually permitted three or four attempts to repair it.
A consumer may also invoke the law if a vehicle is out of service for a certain number of days because of any combination of substantial defects. The time out of service is cumulative, not consecutive, and ranges from 15 to 40 days.
Paint defects, rattles, cosmetic flaws, jumpy suspensions, premature wear of the tires, and the like are not normally considered substantial defects
LEMON LAWS (differs state by state)
FEDERAL WARRANTY ACT
The law does not require any product to have a warranty (it may be sold "as is"), but if it does have a warranty, the warranty must comply with this law.
PATENTS
Protect your own patents!
Don’t interfere with other companies patents
Be aware of an uptick in automotive litigation activity, driven by Non-Practicing Entities (NPEs), alsoreferred to as patent “trolls.”
NPEs have been creative litigators against automotive companies.
Because of the difficulty reducing NPE litigation, trail proceedings may provide one solution.
SOME ADVISE
Review your Quality System
Bench marking not only the vehicles but also routines and procedures/processes
Introduce a retention (“cleaning up”) policy/routine
Choose suppliers with knowledge of US market and are well known and financially strong.
Don’t only focus on lowest price
Supplier contracts should have a clause saying that in case of litigation the suppliers are responsible for their parts.
Continuous education and training of your employees
Be careful with dealer contracts (clear responsibility)
Use risk analysis tools such as FMEA and others
Follow your Product Development Process
Ensure correct, fact based report writingClose all the loops and follow up on all risks Develop a comprehensive litigation and risk management strategy.
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