NADA reminds dealers that, as of August 5, automakers must notify dealers within three business days (five if by non-electronic means) after informing NHTSA of vehicle defects or other issues that pose a substantial and immediate threat to safety.
With regard to less significant defects, once automakers have alerted NHTSA, they must notify dealers of the defect within a reasonable time. NADA commented in support of the five-day time frame.
Manufacturers will be required to keep track of when they sent the notices to dealers. NHTSA rejected requests to require manufacturers to notify dealers of offers to repurchase defective equipment.
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