U.S. Bus Cries Uncle, Pays 20K Fine
Reprinted from The Safety Record, Volume 6, Issue 6, December 2009
WASHINGTON, D.C – On the eve of a rare non-compliance public hearing, Transportation Collaborative, Inc., a New York school bus company, agreed to complete by September, 15 recalls campaigns dating back to 2001 and to pay a $20,000 fine.
NHTSA abruptly cancelled an October 23, 2009 public hearing to determine if TCI had met its obligations to notify owners and to remedy defects related to a slew safety failures – ranging from minor infractions, such as a misplaced mirror use label, to serious violations, such as seat anchorages that didn’t meet the minimum standard — in buses built by U.S. Bus, Inc.
Over a six-year period, ending in 2007, U.S. Bus Corp filed 21 defect and non-compliance reports to the agency. It had agreed to complete the campaigns, and filed quarterly reports, but recorded no real progress in making any substantive repairs. Then, in November 2007, U.S. Bus “sold” its assets to TCI, another bus company located about 15 miles away. After the transfer, the agency began to investigate the outstanding recalls and the ownership of both companies. The agency discovered that it was merely a paper transfer among common owners, motivated by an attempt to skirt their recall responsibilities. NHTSA tentatively concluded that TCI was on the hook to finish the recalls.
According to a settlement agreement signed on Oct. 23, TCI was required to file a revised defect and noncompliance information report for the 15 undone recalls to NHTSA’s Recall Management Division by Nov. 13, including a description of TCI’s remedy and a plan for reimbursing any owner who incurred costs trying to fix the problem. NHTSA reserved the right to request that TCI send the agency a complete remedy kit with instructions to determine if the remedy is sufficient.
“Failure to correct a deficiency is considered breach of this Agreement and Order, unless TCl can show that the vehicle owner was sent the remedy kit or owner notification letter and failed to remedy the vehicle,” the agreement states.
For six of the recalls, TCI had until the end of November to provide NHTSA with a separate report for each recall “documenting successful installation and testing of the remedy in a full vehicle or a vehicle body that is identical, in pertinent respects, to that of the affected vehicles.”
TCI was also required to send a notice of the noncompliances or defects to all owners, purchasers, and dealers of the affected vehicles, except those that TCI could document as having had the remedy performed.
It appears as though many, many TCI customers received notices. New documents filed to satisfy the settlement agreement show that U.S. Bus didn’t actually make any repairs in some of the most serious instances. For example, Recall 05V-255 required U.S. Bus to fix improper or missing welds from the restraining barrier located in front of the forward-most seat of the Sturdibus HD model. Recall 05V257 required the company to make repairs to the glass retention gasket on the rear emergency door windows, to comply with the FMVSS 217 Emergency Exits and Retention and Release retention force requirements. The company’s latest defect filings show that not one vehicle in those recall populations has ever been repaired.
U.S. Bus had previously sent all of the typical recall paperwork to the agency – including a copy of the owner notification letter. But given the seriousness of the defects and the population of occupants in the affected vehicles – school children – one can’t help but wonder why no owners demanded repairs. NHTSA may have concluded that U.S. Bus didn’t actually send any notice to owners – the settlement agreement required TCI not only to file a copy of the materials used to inform owners of affected vehicles, it also mandated that TCI supply a list of the recipients of the notices, the VIN numbers of the affected vehicles, and the date the notices were sent.
TCI must again file its six quarterly reports, and if the company has not repaired at least 50 percent of the vehicles by Sept. 30, it will be required to report the poor remedy rate to NHTSA and to launch another campaign. Once the final recall reports are filed, NHTSA will decide if TCI has finally fulfilled its recall obligations – any work the agency deems undone will have to be completed, according to the agreement.
In exchange for the fine, NHTSA agreed to make no formal determination on TCI’s failure to implement the recalls. But the agency kept a second, monetary threat in reserve: Should TCI fail to perform adequately implement all the recalls, the company will be assessed another $100,000 fine.