Essential Takata Airbags reminder!

Public news

There are important rules surrounding the Takata Airbag recall that all MTA members must be aware of!

The most important rule is that a dealer must not sell any vehicle under active recall (Section 9 (4) (b)). The airbag must first be replaced. This includes dealer to dealer transactions (wholesale deals).

As of 31 December 2018, the sale of any new or demonstrator vehicle that is affected by the Takata recall is not allowed.

Second-hand vehicles currently under Future Recall can be sold (to consumers and other dealers) with the appropriate disclosure requirements as set out in the Recall Notice:

Vehicles less than 6 years old (Section 9(4)(c)):

Prior to supply of a Vehicle that is not under active recall but which is identified by a Supplier as subject to future recall in the Supplier's Recall Initiation Schedule or is otherwise believed or known by the person to have an Affected Takata Airbag Inflator and which is less than six years post manufacture (using January of the model year as a proxy for date of manufacture), notify the prospective purchaser (orally and in writing) that:

i) the Vehicle has a faulty Takata airbag inflator which, depending on its age and other factors, will pose a risk of serious injury or death in the future;

ii) the inflator will require replacement, and to avoid the risk of injury or death, it is critical that the inflator be replaced as soon as possible after recall action is initiated by the Supplier, because as it gets older, a combination of high temperatures and humidity can affect it and, if the vehicle is involved in a collision, the airbag can go off with too much explosive force causing sharp metal fragments to shoot out and kill or seriously injure people in the vehicle;

iii) the Supplier will initiate recall of the inflator at the time specified in the Recall Initiation Schedule which is (or will be, as applicable) on the Supplier's website;

iv) the Supplier will arrange for replacement of the inflator by making direct contact with the purchaser when recall action is initiated, if the purchaser's contact details are known by the Supplier; and

v) further information is available on the Supplier's website, and the purchaser can also contact the Supplier for further information.

Vehicles more than 6 years old (Section 9(4)(d)):

Prior to supply of a Vehicle that is not under active recall but which is identified by a Supplier as subject to future recall in the Supplier's Recall Initiation Schedule or is otherwise believed or known by the person to have an Affected Takata Airbag Inflator and which is more than six years post manufacture (using January of the model year as a proxy for date of manufacture), notify the prospective purchaser (orally and in writing) that:

i) the Vehicle has a faulty Takata airbag inflator which poses a risk of serious injury or death which increases as the vehicle gets older and is exposed to high heat and humidity. The combination of age, high temperatures and humidity can affect the airbag so that, if the vehicle is involved in a collision, (the airbag can go off with too much explosive force causing sharp metal fragments to shoot out and kill or seriously injure people in the vehicle

ii) the inflator requires replacement, and to minimise the risk of injury or death, it is critical that the inflator be replaced as soon as possible after recall action is initiated by the Supplier; and

iii) the information specified in sub paragraphs 9(4)(c)(iii), (iv) and (v).

Seek consent of the purchaser to provide their contact details to the relevant supplier (manufacturer in almost all circumstances) (Section 9(4)(e)):

At the time of supply of a Vehicle that is not under active recall but which is believed or known by the person to have an Affected Takata Airbag Inflator, seek consent of the purchaser to provide the purchaser's contact details, including postal address, telephone and email address, to the relevant Supplier so that the Supplier can contact the purchaser regarding replacement of the Affected Takata Airbag Inflator, and provide the purchaser's details to the relevant Supplier if and when consent is obtained. Further, where a purchaser does not provide consent, the person must encourage the purchaser to contact the Supplier directly and provide contact details.

The MTA received confirmation from the ACCC Takata Taskforce late last year that these disclosure requirements must be adhered to even when selling to another dealer. We have previously provided templates for these disclosure requirements and they are available on our website by clicking here.

A breach of the Recall Notice (which you can access by clicking here) can result in a fine of up to $1.1 million for a body corporate and $220,000 for an individual, so it is important that you comply with the rules listed above.

You are also urged to check your stock and if you are unsure of your obligations, you are encouraged to contact the MTA’s Industry Engagement Specialist, Nathan Groves by clicking here.