Why do recalls matter to an auto recycler?

Recalls on auto parts are making headlines around the world on a weekly, if not daily basis at the moment. Some of these are big recalls that are significant to the manufacturer but they are equally so to the Auto Recycler and consumer.

Why do recalls matter to an auto recycler?

The problem with recalled parts continuing to circulate is an issue that we all need to take accountability for and work collectively as an industry to reduce. Whilst we can assume that auto recyclers would never knowingly on-sell a recalled part and that they remove and destroy any defective parts from a vehicle, there is a significant loophole that we cannot ignore.

A part may be recalled at any time. The challenge for auto recyclers is multi-pronged. The simplest task is to identify if the part being sold has been recalled, before selling it. But even this is very cumbersome and time consuming for those that want to do it properly without the right system in place.

But what about if the auto recycler has sold a perfectly good part, and at some point in the future, it is recalled? How do they know that a part they sold some time ago, has now been recalled? Do they have a way to do this, and just as importantly communicate it to their customer that purchased this part that it is now recalled?

The part has likely passed through multiple hands to get back into a vehicle. From the auto recycler who removed the part and sold it, to the insurer who approved the part to be used, the collision repairer who installed it, or mechanic that performed the repair on behalf of the vehicle owner, to the consumer who is now unknowingly driving around with this part. Who is responsible?

Responsibility needs to start with us as an industry.

It’s illegal to sell recalled part.

The NHTSA is responsible for regulating motor vehicle safety standards and enforcing vehicle recalls in the United States. Under this act, manufacturers are required to notify the NHTSA, vehicle owners, dealerships, and distributors of any safety-related defects or non-compliance issues with their products. The act prohibits the sale or lease of new or used vehicles with unrepaired safety.

Similar laws apply in the UK, New Zealand and Australia.

You may be liable for harm or injury.

It is also not only unethical, but is a huge liability to the business and individual who sells that part.

While the legal implications are of course ones we should all be aware of, there is also the fact that selling a recalled auto part that causes harm or injury to someone may expose the seller to liability for damages. If a buyer suffers damages due to a recalled part, they may seek compensation from the seller or business involved.

As an industry we need processes in place to not only keep on top of the sheer volume of recalls occurring, we also need to have a process in place to protect consumers when the part they have purchased from a seller is recalled after the purchase has taken place.

Why is it up to the auto recycler and not the manufacturer and consumer?

Honestly, it’s everyone's responsibility. But there is a lot more that we as an industry should be doing.

The ARA is excellent at encouraging recyclers to ensure they are checking for recalled parts by offering them a process/system to check for recalls when inventorying a vehicle. The ARA has been vocal on this topic for many years now and is well positioned to help auto recyclers in the USA. BidBuddy also has a function to alert their users of a recall when previewing salvage they are looking to purchase.

The UK has an independent certification process established now that is overseen by the Vehicle Recyclers Association. The VRAC program has been accepted by all key industry stakeholders, including all major insurers, mechanical and collision repairers, ebay and environmental bodies. A key component of the VRAC program is the recall process. All certified members must have a recall process in place and documented, with the majority using All Auto Recalls. These certification programs are not only a great part of addressing recalls in the industry, it’s also a means by which recyclers can protect themselves. Should something happen to a vehicle with a part they have sold and they are questioned for liability, they have a process and proof in place that they have in fact done their due diligence and have a recall policy.

Without a certification program in place to speak of in Australia or New Zealand, many recyclers work hand in hand with All Auto Recalls directly and are able to run the same program as that offered in the UK.

What can the industry do to reduce recalled parts in circulation?

You need a process. The impact and results could be huge. It could be the difference of a life saved.

One option is All Auto Recalls by Auto PARTnered Solutions.

Our system All Auto Recalls analyses every VIN you have ever handled against the recall database and sends you a report of affected VINs and the specifics of each recall.

You can then review your inventory, remove affected components and know that the parts you sell have been recall checked and passed. What’s more important, is that you will know if any of the VINs have new recalls which you didn’t know of at the time of loading those parts into your inventory system. The Auto Alerts function identifies any new recalls on all your stored VINs and notifies you of these, so you can remove that part from the market if still in stock, or contact the buyer and notify them of the part defect and recall.

Whilst many are implementing recall processes, it would be remiss if I didn’t say the daily news alerts of more recalls makes me nervous for our industry.

If you would like to understand how All Auto Recalls works, please reach out. Alternatively, contact your country association to find out more about becoming a certified auto recycler.