ARAA: Salvage Takata Airbags Recovery Program

On 28 February, 2018 the Minister Assisting the Treasurer released the Consumer Goods (Motor Vehicles With Affected Takata Airbag Inflators and Specified Spare Parts) Recall Notice 2018 (RECALL NOTICE).

The Australian Competition and Consumer Commission (ACCC) is responsible for implementation of the above RECALL NOTICE.

The RECALL NOTICE places obligations on any person who, in trade or commerce, supplies airbags or airbag inflators as “Spare Parts”.

The RECALL NOTICE specifies certain airbags as “Affected Airbags”. It makes it illegal to sell an “Affected Airbag”. This applies particularly to automotive recyclers, scrap metal dealers and second hand parts sellers.

The RECALL NOTICE places an obligation on sellers of Spare Parts to:
•    Use their best endeavours to identify whether any airbag they have in their possession, power or control is an Affected Airbag;
•    Notify the manufacturer as soon as practicable after becoming aware that they have an Affected Airbag in their possession, power or control;
•    Make the Affected Airbag available for retrieval by the manufacturer.

The Auto Recyclers Association of Australia (ARAA) is working with manufacturers to assist them in the recovery of Affected Takata Airbags.
Four field representatives commenced visiting auto recycling premises from 5 November, 2018. Visits have so far been conducted in North Queensland, Brisbane, Sydney and Adelaide. Melbourne and Perth visits commence next week and will continue through to 20 December. Some 300 businesses will have been visited by 20 December.

The prime objective of the ARAA Program is to ensure maximum protection to the community from the possibility of an Affected airbag being used as a spare part. The purpose of these visits has therefore been to explain the requirements of the Recall Notice and to assist businesses in undertaking a preliminary audit of their inventory for Affected Airbags.

Collection of airbags has now commenced. Collection of files for processing of Certificates of Destruction has commenced, but there are some issues around these still to be clarified by the ACCC.

The following manufacturers have either finalised their engagement of ARAA, or have indicated an intention to engage ARAA and have taken positive steps towards such engagement:

Toyota Motor Corporation Australia Limited
Honda Australia Pty Ltd
Mazda Australia Pty Ltd
Mitsubishi Motors Australia Limited
GM Holden Ltd
Nissan Motor Co. (Australia) Pty Ltd
Fiat Chrysler Australia Pty Ltd
BMW Australia Ltd
Ford Motor Company of Australia Ltd
Subaru (Aust) Pty Ltd

In summary, the key deliverables of the ARAA Program are as follows:
1. Contact every contactable automotive recycler, scrap metal dealer and second hand parts seller within Australia (and in Australian Territories) who deals in salvage vehicles or car parts through the following means:
a) Making direct phone contact with each recycler, dealer or parts seller to inform them of the requirements of the ACCC Notice and to inquire as to relevant vehicles or parts that may be in their possession ;
b) Sending emails to all possible businesses;
c) Advertising in relevant Trade Magazines.

2. Establishing a single web portal through which businesses can conveniently check their existing vehicle stock or separated airbags stock for the purpose of identifying Affected Airbags;
3. Working with businesses to assist and support them in actually checking their stock;
4. Undertaking direct site visits through four field representatives to businesses in each State and Territory likely to have relevant stock for the purpose of identifying Affected Airbags and assisting the business to remove and return such airbags;
5. Setting as a priority the recovery of Alpha Airbags and the recovery of Affected Airbags in Northern Australia;
6. Incentivising the recovery of Affected Airbags by offering fair compensation for the time and effort incurred by a business in returning an Affected Airbag to OEM;
7. Providing safe handling advice to all recyclers relating to the removal, storage and packaging of Affected Airbags;
8. Providing packaging compliant with UN Hazmat Standard to the recycler for the purpose of packing the airbag for return;
9.    Providing courier pick of the airbags from recycler premises;
10. Providing prompt payment to the recycler on return of the airbag;
11. Arranging for the return of Affected Airbags to the Manufacturer, or the safe and environmentally compliant destruction of Affected Airbags in Australia;
12. Proving full traceability of all contacts made with each automotive recycler, scrap metal dealer and second hand parts seller;
13. Providing full traceability of relevant vehicles identified, Affected Airbags recovered and airbags shipped back to Japan or destroyed in Australia;
14. Providing full monthly reporting to each Manufacturer on all of the above Program Deliverables.

The above program will operate through to December, 2020, with some aspects ongoing.

For further information on this Program, please go to:
1300 TAKATA (1300 82 52 82)
David Nolan
Executive Director

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