Audit: NHTSA Needs To Improve Recall Investigations
A new audit says the National Highway Traffic Safety Administration needs to make significant improvements in its handling of auto safety investigations. The Transportation Department's Office of Inspector General says that after an 18-month review, NHTSA needs better training, better documentation on responding to complaints and deciding whether to open an investigation — and issued 10 recommendations for improvements.
The agency said it agreed with half of them and mostly agreed with another four. The audit found that NHTSA failed to complete 57 percent of preliminary investigations on time. NHTSA also left personal information in public view from its records in at least three cases that should not have been disclosed, the audit said.
The report issued earlier this month came at the request of Congress and Transportation Secretary Ray LaHood in the wake of Toyota Motor Corp.'s sudden acceleration recalls. NHTSA came under harsh criticism from congressional leaders in early 2010 for failing to do more to investigate sudden acceleration incidents. Rep. Ed Towns, D-N.Y., said last year NHTSA "failed the taxpayers."
"Something has gone terribly wrong. The system meant to safeguard against faulty vehicles has failed, and it needs to be fixed. And it needs to be fixed right away," said Sen. Jay Rockefeller, D-W.V., chairman of the Senate Commerce Committee in March 2010. NHTSA did not fulfill its responsibility in the past and has more to do in the present, and needs greater resources and authority in the future."
But despite criticism, Congress failed to pass any new safety legislation in the wake of the incidents.
NHTSA's Office of Defects Investigation doesn't track whether it reviews a consumer complaint in a timely fashion. It also doesn't thoroughly document decisions by its defect assessment panel to decide whether to open a preliminary investigation, the audit said.
"Without comprehensive documentation of pre-investigation activities, ODI's decisions are open to interpretation and questions after the fact, potentially undermining public confidence in its actions," the audit said.
The agency has "already begun to take action to address these issues," said NHTSA spokeswoman Lynda Tran.
David Strickland, NHTSA administrator, said in a letter to auditors that the agency was committed to ensuring transparency. "It is critical that the American public understand that ODI provides objective and thorough analysis and does everything within its statutory authority to enhance vehicle safety," Strickland said.
Reliance on 'on-the-job training'
In a 2009 investigation into General Motors Co.' Saab 9-3, the Detroit automaker submitted documents requested by NHTSA behind schedule. NHTSA said it granted an extension -- but there was no evidence of any extension granted or even sought.
The agency also needs a systematic process for deciding whether to seek outside assistance and should "develop a formal training program to ensure staff has the necessary skills and expertise," the audit found.
Between 2002 and 2009, just 15 of NHTSA's 23 defect investigators took a training course related to automobile technology, dynamics and crashes. The staff took a total of 30 courses over an eight-year-period. The agency "relies heavily on its on-the job-training," the report said.
NHTSA said it plans to complete a review of its defects office by April 2013, including deciding whether it has proper staffing and training. The agency also routinely fails to document meetings with automakers. The audit recommended NHTSA establish "a complete and transparent record system with documented support for decisions that significantly affect its investigations."
The report raised questions about NHTSA's information sharing with other countries — and it noted that the cooperation agreement with the United Kingdom expired in 2007.
In Japan, safety investigators conduct site visits to automakers' to ensure they are turning over all data, and Germany's auto safety office assesses the plausibility of the manufacturer's data. NHTSA does neither, the report said. NHTSA noted it shares far more information than others — and officials met with Chinese and Canadian counterparts last month.
"Relative to its foreign counterparts, NHTSA is unquestionably the most transparent regulatory automotive safety organization," Strickland said.
Late investigations
The Defects office has 53 employees. Between 2002 and 2009, the office reviewed 321,000 consumer complaints, prepared 811 investigative proposals and conducted 613 investigations.
Of those, 203 were upgraded to engineering analyses.
NHTSA denied 78 percent of all defect petitions it received.
The agency also didn't complete 57 percent -- 23 of 42 investigations reviewed - on time, according to random sample.
The agency's internal goal is to complete a preliminary investigation within 120 days — and engineering analyses within a year. A total of 40 percent of engineering analyses reviewed weren't completed on time.
Strickland said many factors — outside of NHTSA's control — can extend investigations. But he added that NHTSA "recognizes that there may be value to more fully documenting why some investigations may extend beyond timeliness goals."
State Farm Insurance provided crash data to a NHTSA division chief, but it was lost when the division chief was killed in a car crash in October 2004. "Without proper documentation, ODI does not have assurance that its data on the status of potential safety defects are complete," the report said. NHTSA doesn't document when it receives a complaint, but it tags a complaint when it is reviewed. It pledged to do a better job tracking complaints and retaining records in cases that aren't the subject of a preliminary investigation. Between 2002 and 2009.
The Alliance of Automobile Manufacturers — the trade group representing Detroit's Big Thee automakers, Toyota Motor Corp., and seven others — declined to comment.