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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 8 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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On August 16, 2024, the National Highway Traffic Safety Administration (<a>NHTSA</a>) issued a <a href="https://www.federalregister.gov/documents/2024/08/16/2024-18112/record-retention-requirement?utm_campaign=subscription+mailing+list&amp;utm_medium=email&amp;utm_source=federalregister.gov">final rule</a> that requires manufacturers of motor vehicles, child restraint systems and tires to maintain records regarding malfunctions that may relate to motor vehicle safety for at least 10 years, instead of five years as currently required.

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The Fixing America’s Surface Transportation Act (FAST Act), signed into law in December 2015, directed the agency to increase the record retention period to 10 years. The agency first proposed to increase the record retention period in May 2019, and this rule finalizes that proposal.  Effective October 15, 2024, manufacturers are required to retain the applicable records for a period of at least 10 years from the date the records were generated or acquired.

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Currently, manufacturers of motor vehicles, child restraint systems and tires must retain all records (e.g., materials, films, tapes and other information) that contain information concerning malfunctions that may be related to motor vehicle safety. This record retention policy aims to ensure that NHTSA can effectively investigate disposition of defects regarding motor vehicle safety and noncompliance with safety standards.

The impetus behind the final rule is the increased average age of vehicles on the road today. NHTSA relies on manufacturer information to investigate safety-related defects in vehicles and equipment. By increasing the record retention policy, NHTSA can ensure that the vehicle’s age does not interfere with NHTSA conducting investigations into vehicles and equipment. In a May 2019 proposal, NHTSA stated that the average age of the United States light vehicle fleet was 11.6 years in 2016. In 1974, the average age of a passenger car was 5.7 years, and the average age of a truck was seven years. In 2015, there were 44 million vehicles on the road between 16 and 25 years old and an additional 14 million vehicles at least 25 years old. NHTSA concluded that extending the record retention policy ensures NHTSA has access to safety defect records by starting the retention period from the date the records are generated. NHTSA weighed the importance of having access to these records against the burden that an extended record retention period would have on manufacturers. On balance, NHTSA determined that a ten-year record retention period did not impose an undue burden on manufacturers when compared with NHTSA’s need to have access to older records and conduct defect investigations.

Importantly, there is no change in the types of records manufacturers must keep; they are simply required to keep information already mandated under 49 C.F.R. § 576 for at least 10 years. Notably, the final rule applies to documents in manufacturers’ possession at the time the rule goes into effect (i.e., October 15, 2024) and records generated or acquired in the future.

<em>This advisory bulletin may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel. This document may be considered attorney advertising in some jurisdictions.</em>

https://admin.thompsonhine.com/wp-content/uploads/2024/08/NHTSA-Extends-Manufacturer-Record-Retention-to-10-Years.pdf

NHTSA Extends Manufacturer Record Retention to 10 Years

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