Federal Register/Vol. 81, No. 248/Tuesday, December 27, 2016

Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices 95267 Dated: December 21, 2016. Inc., (‘‘Takata’’) in connection with the November 3, 2015, from approximately Gregory G. Nadeau, recall and remedy of certain types of 23 million to approximately 61 million 5 Administrator, Federal Highway Takata air bag inflators. The CRO, and the number of affected vehicle Administration. including all facts, findings, terms, and manufacturers has grown from 12 to 19. [FR Doc. 2016–31243 Filed 12–23–16; 8:45 am] prior amendments,3 is hereby The size of these recalls, ages of vehicles BILLING CODE 4910–22–P incorporated by reference as if fully set affected, nature of the defect, and forth herein. associated communications and outreach challenges, as well as remedy DEPARTMENT OF TRANSPORTATION I. Nature of the Matter and Findings part and alternative part supply 1. On November 3, 2015, upon the challenges, lends unprecedented National Highway Traffic Safety conclusion of the Coordinated Remedy complexity to the recall and remedy Administration Program Proceeding and closing of process. Given the potential severity of [Docket No. NHTSA–2015–0055] public Docket Number NHTSA–2015– the harm to vehicle occupants when an 0055 (addressing the recalls of certain inflator rupture occurs and the wide- Third Amendment to the Coordinated Takata air bag inflators), NHTSA issued spread exposure across a large vehicle Remedy Order With Annex A; a Consent Order to Takata on November population, the ongoing risk of harm Coordinated Remedy Program 3, 2015 (‘‘November 2015 Consent presented by the defective Takata air Proceeding Order’’) and the CRO. See Coordinated bag inflators is extraordinary. Remedy Order with Annex A, 80 FR Accordingly, for the reasons that follow, AGENCY: National Highway Traffic 70866 (Nov. 16, 2015). and upon consideration of the entire Safety Administration (NHTSA), 2. Since that time, NHTSA has record in this proceeding (including Department of Transportation (DOT). continued its investigation into the NHTSA’s ongoing investigation in ACTION: Third Amendment to the Takata air bag inflator ruptures (EA15– EA15–001, oversight of the Takata non- Coordinated Remedy Order. 001) and has been implementing and desiccated PSAN inflator recalls issued overseeing the Coordinated Remedy in May and June 2015 by the Original DATES: Effective date: This Third Program. As part of the ongoing Affected Manufacturers (the ‘‘Inflator Amendment to the Coordinated Remedy investigation NHTSA has, among other Order went into effect on November 9, Recalls’’) to date, and the Amended things, received briefings from three Consent Order) NHTSA now issues this 2016. independent research organizations,4 Order: This Amendment to the Third Amendment to the Coordinated each of which had undertaken scientific Coordinated Remedy Order Remedy Order. evaluations of Takata’s frontal air bag (‘‘Amendment’’) is issued by the inflators containing non-desiccated Additional Factual Background Administrator of the National Highway phase-stabilized ammonium nitrate 4. Following the issuance of the Traffic Safety Administration (‘‘PSAN’’). See Amendment to November 2015 Consent Order and the (‘‘NHTSA’’), an operating November 3, 2015 Consent Order, CRO, NHTSA continued its administration of the U.S. Department EA15–001 Air Bag Inflator Rupture investigation into the rupturing Takata of Transportation. Pursuant to NHTSA’s (May 4, 2016) (‘‘Amended Consent air bag inflators and began to implement authority under the National Traffic and Order’’). NHTSA staff evaluated the the Coordinated Remedy Program. Motor Vehicle Safety Act of 1966, as research and also consulted with the 5. In late 2015, Takata shared new amended and recodified (the ‘‘Safety Agency’s independent expert on the inflator ballistic testing data with the Act’’), 49 U.S.C. 30101, et seq., and various researchers’ findings. See id. Agency. That data included ruptures specifically, 49 U.S.C. 30118–30120, (including Expert Report of Harold R. during testing of four (4) non-desiccated 30120(a)(1), 30120(c)(2)–(3), 30166(b), Blomquist, Ph.D. as Exhibit A). Based PSPI inflators and two (2) non- 30166(c), 30166(e), 30166(g)(1), and 49 upon the scientific analyses and data desiccated PSPI–L inflators (both of CFR 573.6, 573.14, this Amendment obtained from the researchers and which are passenger side air bag modifies the Coordinated Remedy Order additional data from Takata, on May 4, inflators). Based on the new ballistic issued on November 3, 2015 (‘‘CRO’’) to 2016, NHTSA issued, with Takata’s testing data, in December 2015, Takata add newly affected vehicle agreement, the Amended Consent amended DIRs 15E–042 (for the PSPI–L) manufacturers 1 (the ‘‘Expansion Order, which, among other things, and 15E–043 (for the PSPI) to include Vehicle Manufacturers’’) to the established a phased schedule for the inflators through model year 2008, and Coordinated Remedy Program and to set future recall of all Takata frontal the impacted vehicle manufacturers 6 forth additional requirements and inflators containing non-desiccated expanded their existing recalls to all obligations of the affected vehicle PSAN by December 31, 2019. vehicles with those inflator types manufacturers (the ‘‘Affected Vehicle 2 3. The number of Takata air bag through model year 2008. Manufacturers’’) and TK Holdings, inflators currently recalled, or 6. Meanwhile, in the fall of 2015, scheduled for recall, has increased since Takata began ballistic testing and 1 Including Ferrari North America, Inc. (‘‘Ferrari’’), Jaguar Land Rover North America, LLC analysis of certain non-desiccated PSDI– (‘‘Jaguar-Land Rover’’), McLaren Automotive, Ltd. (‘‘Ford’’), General Motors, LLC (‘‘GM’’), American 5 driver air bag inflators returned from (‘‘McLaren’’), Mercedes-Benz U.S., LCC (‘‘Mercedes- Honda Motor Company (‘‘Honda’’), Mazda North the field. In January 2016, Takata Benz’’), Tesla Motors, Inc. (‘‘Tesla’’), Volkswagen American Operations (‘‘Mazda’’), Mitsubishi Motors notified the Agency that of 961 returned Group of America, Inc. (‘‘Volkswagen’’), and, per North America, Inc. (‘‘Mitsubishi’’), Nissan North Memorandum of Understanding dated September America, Inc. (‘‘Nissan’’), Subaru of America, Inc. non-desiccated PSDI–5 inflators 16, 2016, Karma Automotive on behalf of certain (‘‘Subaru’’), and Toyota Motor Engineering and subjected to testing, three (3) had Fisker vehicles (‘‘Karma’’). Manufacturing (‘‘Toyota’’). ruptured during testing and an 2 Including, in addition to the Expansion Vehicle 3 Amendments were issued granting extensions of additional five (5) had shown elevated Manufacturers, the previously included companies, time to BMW on March 15, 2016, and to GM, internal pressure levels during testing or ‘‘Original Affected Manufacturers’’: BMW of Daimler Vans, and Ford on September 29, 2016. North America, LLC (‘‘BMW’’), FCA US, LLC These amendments are publicly available at: http:// (‘‘FCA’’) (formerly Chrysler), Daimler Trucks North www.safercar.gov/rs/takata/takata-docs.html. 5 This number of inflators does not include like- America, LLC (‘‘Daimler Trucks’’), Daimler Vans 4 Exponent, Inc., Fraunhofer ICT, and Orbital for-like remedies. USA, LLC (‘‘Daimler Vans’’), Ford Motor Company ATK. 6 Honda, Mazda, and Subaru. VerDate Sep<11>2014 20:45 Dec 23, 2016 Jkt 241001 PO 00000 Frm 00170 Fmt 4703 Sfmt 4703 E:\FR\FM\27DEN1.SGM 27DEN1 asabaliauskas on DSK3SPTVN1PROD with NOTICES 95268 Federal Register / Vol. 81, No. 248 / Tuesday, December 27, 2016 / Notices deployment, but did not rupture during most 8 non-desiccated frontal Takata air inflators (whether produced by Takata testing. bag inflators is a function of time, or another supplier). Further, some 7. In January 2016, the Agency temperature cycling, and environmental vehicle manufacturers that became learned that on December 22, 2015, the moisture. Id. at ¶ 5. Other factors may involved in the Takata air bag inflator driver of a 2006 Ford Ranger was killed influence the relative risk 9 of inflator recalls relatively recently must find in a crash in Lancaster County, South rupture, but the overarching root cause remedy parts production capacity in an Carolina, when the non-desiccated SDI of the ruptures consists of the three already crowded marketplace. inflator in his air bag ruptured during identified factors. Additionally, developing and validating deployment. While this vehicle was 10. Based on the Agency’s root cause new remedy parts can add several under recall for the passenger side air determination regarding the non- months, or more, to the process. bag inflator, the driver side air bag desiccated PSAN frontal inflators, on However, not all Suppliers are at inflator had not been recalled because May 4, 2016, NHTSA issued, and Takata maximum capacity for future no ruptures had occurred during agreed to, the Amended Consent Order. production orders. Suppliers have some previous ballistic testing. That ballistic The Amended Consent Order sets forth limited additional production capacity. testing was conducted as part of a a phased schedule of five DIR filings by Further, the Suppliers and Affected proactive surveillance testing program Takata between May 15, 2016 and Vehicle Manufacturers have the ability, that included 1,900 tests conducted on December 31, 2019, that ultimately will with time and capital investments, to parts taken out of vehicles located in the recall all Takata frontal non-desiccated develop additional supply capacity to high absolute humidity (‘‘HAH’’)

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