Vehicle Defect Reporting Gets OMB Nod: Yawn-Worthy Update
Published Date: 11/20/2025
Notice
Summary
The National Highway Traffic Safety Administration (NHTSA) is asking to continue collecting info from vehicle makers about safety defects and problems that don’t meet federal rules. This helps keep drivers safe by making sure manufacturers notify owners and fix issues for free. Comments on this plan are open until December 22, 2025, and there’s no new cost impact for businesses or drivers.
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
Manufacturers: Continued Reporting Burden
Vehicle and vehicle-equipment manufacturers must continue to file defect and noncompliance reports and keep records under 49 CFR parts 573 and 577. NHTSA estimates 240 distinct manufacturers filing an average of 976 Part 573 Safety Recall Reports per year, a total annual burden of 68,879 hours, and total annual industry costs of $85,633,272.
Mailing Volume and Notification Costs
NHTSA estimates manufacturers mail about 51.4 million owner notification letters yearly at an average cost of $1.53 per letter, totaling $78,642,000, plus interim notification letters (3% of recalls) costing $2,359,260, for a 49 CFR part 577 notification cost of $81,001,260 annually. NHTSA states there is no new cost impact for businesses or drivers and that comments on the ICR are due December 22, 2025.
Owner Notifications and Free Remedies
Manufacturers are required to notify owners, purchasers, dealers, and distributors about safety-related defects or FMVSS noncompliances and provide free remedies; they must also file plans to reimburse owners who already paid for repairs before notification. Those notifications and reimbursement plans are part of the required reporting and notification obligations under 49 U.S.C. 30118, 30119, 30120, and implementing regulations.
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