Notice2023-18020
Volkswagen Group of America, Inc., Denial of Petitions for Decision of Inconsequential Noncompliance
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Published
August 22, 2023
Issuing agencies
Transportation DepartmentNational Highway Traffic Safety Administration
Abstract
Volkswagen Group of America, Inc. (Volkswagen or the "Petitioner") has determined that certain model year (MY) 2019 and 2021 Audi motor vehicles do not fully comply with Federal Motor Vehicle Safety Standard (FMVSS) No. 135, Light Vehicle Brake Systems. Volkswagen filed noncompliance reports dated March 27, 2019, and July 26, 2021. Volkswagen petitioned NHTSA (the "Agency") on April 17, 2019, and August 25, 2021, for a decision that the subject noncompliance is inconsequential as it relates to motor vehicle safety. This notice announces the denial of Volkswagen's petitions.
Full Text
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<title>Federal Register, Volume 88 Issue 161 (Tuesday, August 22, 2023)</title>
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[Federal Register Volume 88, Number 161 (Tuesday, August 22, 2023)]
[Notices]
[Pages 57169-57171]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-18020]
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DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration
[Docket Nos. NHTSA-2019-0030 and NHTSA-2021-0066; Notice 2]
Volkswagen Group of America, Inc., Denial of Petitions for
Decision of Inconsequential Noncompliance
AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation (DOT).
ACTION: Denial of petitions.
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SUMMARY: Volkswagen Group of America, Inc. (Volkswagen or the
``Petitioner'') has determined that certain model year (MY) 2019 and
2021 Audi motor vehicles do not fully comply with Federal Motor Vehicle
Safety Standard (FMVSS) No. 135, Light Vehicle Brake Systems.
Volkswagen filed noncompliance reports dated March 27, 2019, and July
26, 2021. Volkswagen petitioned NHTSA (the ``Agency'') on April 17,
2019, and August 25, 2021, for a decision that the subject
noncompliance is inconsequential as it relates to motor vehicle safety.
This notice announces the denial of Volkswagen's petitions.
FOR FURTHER INFORMATION CONTACT: Vince Williams, Office of Vehicle
Safety Compliance, National Highway Traffic Safety Administration
(NHTSA), telephone (202) 366-2319.
SUPPLEMENTARY INFORMATION:
I. Overview
Volkswagen has determined that certain MY 2019 Audi A6 and Audi A7
and MY 2021 Audi A6 Sedan, A6 Allroad, A7, RS6 Avant, RS7, S6 Sedan,
and S7 motor vehicles do not comply with the requirements of paragraph
S5.4.3 of FMVSS No. 135, Light Vehicle Brake Systems (49 CFR 571.135).
Volkswagen filed noncompliance reports dated March 27, 2019, and July
26, 2021, pursuant to 49 CFR part 573, Defect and Noncompliance
Responsibility and Reports. Volkswagen petitioned NHTSA on April 17,
2019, and August 25, 2021, for an exemption from the notification and
remedy requirements of 49 U.S.C. chapter 301 on the basis that this
noncompliance is inconsequential as it relates to motor vehicle safety,
pursuant to 49 U.S.C. 30118(d) and 30120(h) and 49 CFR part 556,
Exemption for Inconsequential Defect or Noncompliance.
Notices of receipt of Volkswagen's petitions were published on
August 21, 2019 (84 FR 43660) and June 17, 2022 (87 FR 36574) in the
Federal Register with a 30-day public comment period. No comments were
received. To view the petitions and all supporting documents log onto
the Federal Docket Management System (FDMS) website at <a href="https://www.regulations.gov/">https://www.regulations.gov/</a>. Then follow the online search instructions to
locate docket numbers ``NHTSA-2019-0030'' and ``NHTSA-2021-0066.''
II. Vehicles Involved
Approximately 3,908 MY 2019 Audi A6 and Audi A7 vehicles,
manufactured between July 27, 2018 and November 6, 2018, are
potentially involved.
Additionally, approximately 4,267 MY 2021 Audi A6 Sedan, A6
Allroad, A7, RS6 Avant, RS7, S6 Sedan, and S7 vehicles, manufactured
between January 11, 2021, and April 14, 2021, are potentially involved.
III. Noncompliance
Volkswagen determined that a small number of the vehicles have a
European-specification brake fluid reservoir cap instead of the
reservoir cap required in S5.4.3 of FMVSS No. 135. The noncompliant
brake fluid reservoir caps do not include the warning label required by
FMVSS No. 135.
IV. Rule Requirements
S5.4.3 of FMVSS 135 requires that each vehicle equipped with
hydraulic brakes have a brake fluid warning statement that reads as
follows, in letters at least 3.2 mm (\1/8\ inch) high: ``WARNING: Clean
filler cap before removing. Use only __ fluid from a sealed
container.'' (Manufacturers must insert the recommended type of brake
fluid, as specified in 49 CFR 571.116, (e.g., ``DOT 3.'') The lettering
shall be permanently affixed, engraved, or embossed, and located so it
is visible by direct view, either on or within 100 mm (3.94 inches) of
the brake fluid reservoir filler plug or cap. The color of the
lettering must also contrast with its background, if it is not engraved
or embossed.
V. Summary of Petition
The following views and arguments presented in this section, ``V.
Summary of Volkswagen's Petition,'' are the views and arguments
provided by Volkswagen and do not reflect the views of the Agency.
Volkswagen describes the subject noncompliance and contends that the
noncompliance is inconsequential as it relates to motor vehicle safety.
Volkswagen explains that it believes the subject noncompliance is
inconsequential to motor vehicle safety because ``the brake fluid cap
clearly shows the specification of the brake fluid required'' and
``provides clear symbols including one for caution and one for
referring to owner manual instructions.'' Volkswagen says that the
owner's manual also ``indicates the proper brake fluid specification
for use in the vehicle.'' Volkswagen states that the ``brake fluid cap
conforms to the requirements of ISO 9128:2006 which is a requirement of
UN-ECE Regulations 13 and 13h.''
Volkswagen contends that NHTSA has previously granted the following
inconsequentiality petitions, which Volkswagen believes are similar to
the subject petition:
<bullet> Jaguar Land Rover North America, LLC, Grant of Petition
for Decision of Inconsequential Noncompliance, 84 FR 13095 (April 3,
2019).
<bullet> Ford Motor Company, Grant of Petition for Decision of
Inconsequential Noncompliance, 78 FR 69931 (November 21, 2013).
<bullet> Hyundai Motor Company, Grant of Petition for Decision of
Inconsequential Noncompliance, 73 FR 38290 (July 3, 2008).
According to Volkswagen, ``service to the brake system involving an
exchange of the brake fluid is not a standard maintenance activity''
and repairs to the brake system ``requires basic technical knowledge
regarding the brake system and should be performed by a trained
technician.''
Volkswagen states that it has not received any field or customer
complaints or notifications about any accidents or injuries related to
the subject noncompliance. In Volkswagen's petition dated April 17,
2019, Volkswagen states that, as of November 7, 2018, production of the
subject vehicles has been corrected (i.e., are now compliant) and the
vehicles ``at the factory have been corrected and unsold units will be
correct prior to sale.'' In Volkswagen's petition dated August 25,
2021, Volkswagen again states that production has been corrected and,
as of April 14, 2021, the vehicles at its factory have been corrected
and the subject vehicles still in its control will be corrected prior
to sale.
Volkswagen concludes each petition by stating its belief that the
subject noncompliance is inconsequential as it relates to motor vehicle
safety, and that its petitions to be exempted from providing
notification of the noncompliance, as required by 49 U.S.C. 30118, and
a remedy for the noncompliance, as required by 49 U.S.C. 30120, should
be granted.
VI. NHTSA's Analysis
In determining inconsequentiality of a noncompliance, NHTSA focuses
on the safety risk to individuals who
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experience the type of event against which a recall would otherwise
protect.\1\ In general, NHTSA does not consider the absence of
complaints or injuries when determining if a noncompliance is
inconsequential to safety. The absence of complaints does not mean
vehicle occupants have not experienced a safety issue, nor does it mean
that there will not be safety issues in the future.\2\
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\1\ See Gen. Motors, LLC; Grant of Petition for Decision of
Inconsequential Noncompliance, 78 FR 35355 (June 12, 2013) (finding
noncompliance had no effect on occupant safety because it had no
effect on the proper operation of the occupant classification system
and the correct deployment of an air bag); Osram Sylvania Prods.
Inc.; Grant of Petition for Decision of Inconsequential
Noncompliance, 78 FR 46000 (July 30, 2013) (finding occupant using
noncompliant light source would not be exposed to significantly
greater risk than occupant using similar compliant light source).
\2\ See Morgan 3 Wheeler Limited; Denial of Petition for
Decision of Inconsequential Noncompliance, 81 FR 21663, 21666 (Apr.
12, 2016); see also United States v. Gen. Motors Corp., 565 F.2d
754, 759 (D.C. Cir. 1977) (finding defect poses an unreasonable risk
when it ``results in hazards as potentially dangerous as sudden
engine fire, and where there is no dispute that at least some such
hazards, in this case fires, can definitely be expected to occur in
the future'').
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Arguments that only a small number of vehicles or items of motor
vehicle equipment are affected also do not justify granting an
inconsequentiality petition.\3\ Similarly, mere assertions that only a
small percentage of vehicles or items of equipment are likely to
actually exhibit a noncompliance are unpersuasive. The percentage of
potential occupants that could be adversely affected by a noncompliance
is not relevant to whether the noncompliance poses an inconsequential
risk to safety. Rather, NHTSA focuses on the consequence to an occupant
who is exposed to the consequence of that noncompliance.\4\ The Safety
Act is preventive, and manufacturers cannot and should not wait for
deaths or injuries to occur in their vehicles before they carry out a
recall.\5\ Indeed, the very purpose of a recall is to protect
individuals from risk. Id.
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\3\ See Mercedes-Benz, U.S.A., L.L.C.; Denial of Application for
Decision of Inconsequential Noncompliance, 66 FR 38342 (July 23,
2001) (rejecting argument that noncompliance was inconsequential
because of the small number of vehicles affected); Aston Martin
Lagonda Ltd.; Denial of Petition for Decision of Inconsequential
Noncompliance, 81 FR 41370 (June 24, 2016) (noting that situations
involving individuals trapped in motor vehicles--while infrequent--
are consequential to safety); Morgan 3 Wheeler Ltd.; Denial of
Petition for Decision of Inconsequential Noncompliance, 81 FR 21663,
21664 (Apr. 12, 2016) (rejecting argument that petition should be
granted because the vehicle was produced in very low numbers and
likely to be operated on a limited basis).
\4\ See Gen. Motors Corp.; Ruling on Petition for Determination
of Inconsequential Noncompliance, 69 FR 19897, 19900 (Apr. 14,
2004); Cosco Inc.; Denial of Application for Decision of
Inconsequential Noncompliance, 64 FR 29408, 29409 (June 1, 1999).
\5\ See, e.g., United States v. Gen. Motors Corp., 565 F.2d 754,
759 (D.C. Cir. 1977).
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NHTSA has evaluated the merits of these inconsequentiality
petitions and determined that Volkswagen has not met its burden of
persuasion that the subject noncompliance is inconsequential to motor
vehicle safety. S5.4.3 of FMVSS No. 135 requires the following four
essential components of the brake fluid cap label: (1) the brake fluid
warning statement ``Warning: Clean filler cap before removing. Use only
fluid from a sealed container.'' (Inserting the recommended type of
brake fluid as specified in 49 CFR 571.116, e.g. ``DOT 3''), the
lettering shall be (2) permanently affixed, engraved or embossed, (3)
located so as to be visible by direct view, either on or within 100mm
(3.94in) of the brake fluid reservoir filler plug or cap, and (4) of a
color that contrasts with its background, if it is not engraved or
embossed. Of the required components of the brake fluid cap reservoir
labeling, the statements ``Clean filler cap before removing.'' and
``Use only fluid from a sealed container.'' are missing and an
exclamation point symbol is used instead of the word ``Warning''.
Volkswagen argues that the brake fluid cap indicates the proper fluid
type and contains the symbols conforming to ISO 9128:2006, which is a
requirement of UN-ECE Regulations 13 and 13h. These include the
aforementioned exclamation mark, a symbol for the brake system, and a
third symbol apparently directing the viewer to consult the vehicle's
owner's manual or service information. NHTSA notes that the symbols on
the ISO brake fluid cap are, at best, partially familiar to U.S.
vehicle owners and users and are not the equivalent of the printed
information required by the safety standard.
Furthermore, Volkswagen added that normal brake fluid upkeep is not
considered a basic maintenance that a consumer would handle on their
own and the servicing of the brake system should be performed by a
trained technician with technical knowledge of the brake system. The
contention that owners do not perform brake service was not supported
by data and is an assumption that becomes increasingly more
indefensible as a vehicle ages. When a consumer must check or add brake
fluid, it is important to have the required warnings in place to
preserve the performance and durability of the brake system.
While prior NHTSA determinations that a noncompliance was
inconsequential are not considered as binding precedent and the Agency
considers each petition on its own merits, the prior decisions cited by
the Petitioner have limited applicability in this case. One decision
involved a placard with all the required warnings permanently attached
to the brake fluid reservoir, but not to the cap itself. The two other
decisions that the Petitioner cited involved a single symbol being
substituted for a required word or phrase. Conversely, the Petitioner's
subject noncompliance involves multiple symbols that are missing from
the noncompliant cap including the statement ``Clean filler cap before
removing'' which is required to prevent unnecessary contamination from
being introduced into the brake system when a customer or service
technician tries to inspect the brake fluid, as well as the statement
``Use only fluid from a sealed container'' which is intended to prevent
a customer or technician from adding the incorrect grade of brake fluid
or contaminated fluid when adding or replenishing the brake fluid. Both
of the aforementioned conditions could lead to a degradation of the
vehicle's brake system performance and present an unintended risk to
the driver and the driving public.
VII. NHTSA's Decision
In consideration of the foregoing, NHTSA finds that Volkswagen has
not met its burden of persuasion that the subject FMVSS No. 135
noncompliance is inconsequential to motor vehicle safety. Accordingly,
these petitions are hereby denied and Volkswagen is consequently
obligated to provide notification of and free remedy for that
noncompliance under 49 U.S.C. 30118 and 30120.
The Agency also notes that these petitions involve the same
noncompliance that occurred initially in several months of production
in 2018 and then reoccurred again in vehicles produced over several
months in 2021. Vehicle manufacturers have a legal obligation to ensure
that their vehicles manufactured for the U.S. fully comply with
applicable FMVSS and are required to exercise reasonable care in
certifying their vehicles as compliant. 49 U.S.C. 30115(a). Volkswagen
should ensure it has improved its processes to prevent further
reoccurrence of this issue.
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(Authority: 49 U.S.C. 30118, 30120; delegations of authority at 49
CFR 1.95 and 501.8.)
Otto G. Matheke, III,
Acting Associate Administrator for Enforcement.
[FR Doc. 2023-18020 Filed 8-21-23; 8:45 am]
BILLING CODE 4910-59-P
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</html>Indexed from Federal Register on August 22, 2023.
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