How Auto Suppliers Can Prepare For Recalls

Law360, New York (May 1, 2014, 8:58 AM EDT) -- With the recent high-profile recalls involving Toyota and GM, auto suppliers are anticipating a spike in recalls and asking themselves how to prepare for this inevitability.

As a start, auto suppliers need to understand National Highway Traffic Safety Administration (NHTSA) procedures and regulatory concerns. Auto suppliers also need to consider the fact that liability is no longer limited to civil penalties and lawsuits, as the U.S. Department of Justice has turned its attention to potential criminal liability related to these recalls.

Suppliers should take steps to ensure that their responses to recalls and potential defects are efficient, transparent, thorough and timely....

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