detect safety-related defects, regardless of the type or source of the unsafe parts. Furthermore, even if NHTSA’s database were to identify unsafe aftermarket crash parts, the agency might not be able to require manufacturers to recall them because some of these parts do not identify the product manufacturer and documentation on their purchasers is limited. Recent legislation gives NHTSA an opportunity to look at ways to improve its systems so that it will be in a better position to identify defective automotive parts and require manufacturers to recall them. This report contains recommendations to strengthen NHTSA’s ability to detect and order the recall of unsafe vehicle parts from the nation’s roadways. NHTSA generally agreed with these recommendations. However, in commenting on a draft of this report, NHTSA clarified its regulatory authority over recycled airbags. We modified the report to reflect NHTSA’s comments.

Background

Crash parts are generally made of sheet metal or plastic and installed on the exterior of a motor vehicle. These parts include hoods, doors, fenders, and trunk lids. Crash parts exclude mechanical parts such as batteries, filters, shock absorbers, and spark plugs. Body shops often use a mix of parts in collision repairs, but we use the term “crash parts” in this report to refer to parts used on the exterior of a vehicle. Aftermarket crash parts are the replacement automotive crash parts that are not made by the original equipment manufacturer (OEM). Many of these aftermarket crash parts manufacturers are located overseas. Recycled airbags are salvaged nondeployed airbags removed from damaged or old vehicles. Crash parts are big business. In 1999, drivers had an estimated 6 million automobile crashes in the United States costing over 40,000 lives and about $8 billion in damage—of which $1.2 billion represents the costs of aftermarket crash parts. Overall, about 60 cents out of every dollar of automobile insurance claims is spent on repairing collision damage to vehicles. Insurance companies estimate that using aftermarket instead of OEM parts saves hundreds of millions of dollars each year. Until the mid-1980s, consumers and auto body shops could purchase new replacement crash parts only from the original automobile manufacturer. At that time, independent parts manufacturers began offering aftermarket replacement parts at substantially lower prices. Still, the crash parts industry remains highly concentrated, and OEM parts account for about 80 percent of the market. Figure 1 shows the replacement crash parts market by source.