82 FR 53561 - Ford Motor Company, Receipt of Petition for Inconsequentiality and Decision Denying Request for Deferral of Determination

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration

Federal Register Volume 82, Issue 220 (November 16, 2017)

Page Range		53561-53563
FR Document		2017-24829

On July 10, 2017, Takata Corporation (``Takata'') filed a defect information report (``DIR'') in which it determined that a safety-related defect exists in certain phase-stabilized ammonium nitrate (``PSAN'') driver-side airbag inflators that it manufactured with a calcium sulfate desiccant, including inflators that it supplied to Ford Motor Company (``Ford''), Mazda North American Operations (``Mazda''), and Nissan North America Inc. (``Nissan'') for use in certain vehicles. Ford has petitioned the Agency for a decision that, because analysis of inflators installed in certain Ford vehicles does not demonstrate propellant-tablet density degradation or increased inflation pressure, and because there are design differences between the inflators installed in Ford vehicles and an inflator variant installed in Nissan vehicles, the equipment defect determined to exist by Takata is inconsequential as it relates to motor vehicle safety in the Ford vehicles affected by Takata's DIR. Ford requests relief from its notification and remedy obligations under the National Traffic and Motor Vehicle Safety Act of 1966 and its applicable regulations, and further requests that the Agency allow Ford until March 31, 2018 to complete certain analysis and testing before the Agency decides on the petition.

Federal Register, Volume 82 Issue 220 (Thursday, November 16, 2017)

[Federal Register Volume 82, Number 220 (Thursday, November 16, 2017)]
[Notices]
[Pages 53561-53563]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-24829]

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DEPARTMENT OF TRANSPORTATION

National Highway Traffic Safety Administration

[Docket No. NHTSA-2017-0093; Notice 1]

Ford Motor Company, Receipt of Petition for Inconsequentiality
and Decision Denying Request for Deferral of Determination

AGENCY: National Highway Traffic Safety Administration (NHTSA),
Department of Transportation.

ACTION: Notice of receipt of petition; notice of receipt of request for
deferral, and of decision denying request for deferral.

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SUMMARY: On July 10, 2017, Takata Corporation (``Takata'') filed a
defect information report (``DIR'') in which it determined that a
safety-related defect exists in certain phase-stabilized ammonium
nitrate (``PSAN'') driver-side airbag inflators that it manufactured
with a calcium sulfate desiccant, including inflators that it supplied
to Ford Motor Company (``Ford''), Mazda North American Operations
(``Mazda''), and Nissan North America Inc. (``Nissan'') for use in
certain vehicles. Ford has petitioned the Agency for a decision that,
because analysis of inflators installed in certain Ford vehicles does
not demonstrate propellant-tablet density degradation or increased
inflation pressure, and because there are design differences between
the inflators installed in Ford vehicles and an inflator variant
installed in Nissan vehicles, the equipment defect determined to exist
by Takata is inconsequential as it relates to motor vehicle safety in
the Ford vehicles affected by Takata's DIR. Ford requests relief from
its notification and remedy obligations under the National Traffic and
Motor Vehicle Safety Act of 1966 and its applicable regulations, and
further requests that the Agency allow Ford until March 31, 2018 to
complete certain analysis and testing before the Agency decides on the
petition.

DATES: The closing date for comments is December 18, 2017.

ADDRESSES: Interested persons are invited to submit written data,
views, and arguments regarding this petition for inconsequentiality.
Comments must refer to the docket and notice number cited in the title
of this notice and be submitted by one of the following methods:
Internet: Go to http://www.regulations.gov and follow the
online instructions for submitting comments.
Mail: Docket Management Facility, M-30, U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Room W12-
140, Washington, DC 20590.
Hand Delivery or Courier: U.S. Department of
Transportation, 1200 New Jersey Avenue SE., West Building, Room W12-
140, Washington, DC 20590 between 9 a.m. and 5 p.m. Eastern Time,
Monday through Friday, except Federal holidays.
Facsimile: (202) 493-2251.
You may call the Docket at (202) 366-9324.
Note that all comments received will be posted without change to
http://www.regulations.gov, including any personal information
provided. Thus, submitting such information makes it public. You may
wish to read the Privacy Act notice, which can be viewed by clicking on
the ``Privacy and Security Notice'' link in the footer of http://www.regulations.gov. DOT's complete Privacy Act Statement is available
for review in the Federal Register published on April 11, 2000 (65 FR
19477-78).
The petition, supporting materials, and all comments received
before the close of business on the closing date indicated above will
be filed in the docket and will be considered. Comments and supporting
materials received after the closing date will also be filed and will
be considered to the extent possible. When the petition is granted or
denied, notice of the decision will also be published in the Federal
Register pursuant to the authority indicated at the end of this notice.

FOR FURTHER INFORMATION CONTACT: For legal issues: Stephen Hench,
Office of the Chief Counsel, NCC-100, National Highway Traffic Safety
Administration, 1200 New Jersey Avenue SE., Washington, DC 20590
(telephone: (202) 366-5263).
For general information regarding NHTSA's investigation into Takata
airbag inflator ruptures and the related recalls, visit https://www.nhtsa.gov/recall-spotlight/takata-air-bags.

SUPPLEMENTARY INFORMATION:

I. Background

On November 3, 2015, NHTSA issued, and Takata agreed to, a Consent
Order setting forth penalties, requirements, and performance
obligations in connection with Takata's alleged failure to fully comply
with the National Traffic and Motor Vehicle Safety Act of 1966 as
amended and recodified (the ``Safety Act''), 49 U.S.C. 30101, et seq.,
and its applicable regulations. Under the Consent Order, Takata is
required to

[[Page 53562]]

test its phase-stabilized ammonium nitrate (``PSAN'') inflators that
contain a desiccant (a drying agent) in cooperation with vehicle
manufacturers ``to determine the service life and safety of such
inflators and to determine whether, and to what extent, these inflator
types suffer from a defect condition, regardless of whether it is the
same or similar to the conditions at issue'' in the Defect Information
Reports (``DIRs'') Takata had filed for its non-desiccated PSAN
inflators. Consent Order ] 28.
In February 2016, NHTSA requested Ford's assistance in evaluating
Takata calcium-sulfate desiccated PSDI-5 driver-side airbag inflators,
to which Ford agreed. In June 2016, Ford and Takata began a field-
recovery program to evaluate Takata calcium-sulfate desiccated PSDI-5
driver-side airbag inflators that were original equipment in MY 2007-
2008 Ford Ranger vehicles in Florida, Michigan, and Arizona. See also
Recall No. 17E-034.\1\ Nissan also initiated a similar field-recovery
program for its Versa vehicles in March 2016. Recall No. 17V-449. By
January 2017, a very limited number of samples from Ford were available
and tested. Recall No. 17E-034. In March 2017, Takata and Ford met to
review the field data collected from the inflators returned by Ford and
Nissan. Recall No. 17E-034. Between March and June 2017, additional
Ford inflators were subjected to live dissection, which included
chemical and dimensional propellant analyses, and ballistic testing.
Recall No. 17E-034. Also in June, Takata reviewed with Ford and NHTSA
field-return data from Ford inflators. Recall No. 17E-034. Ford then
met with NHTSA on July 6, 2017 to discuss the data collected to date,
as well as an expansion plan for evaluating Takata calcium-sulfate
desiccated PSDI-5 driver-side airbag inflators.
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\1\ Later, under Paragraph 43 of the Third Amendment to the
Coordinated Remedy Order (``ACRO''), NHTSA ordered each vehicle
manufacturer ``with any vehicle in its fleet equipped with a
desiccated PSAN Takata inflator'' (and not using or planning to use
such an inflator as a final remedy) to develop a written plan
describing ``plans to confirm the safety and/or service life'' of
desiccated PSAN Takata inflators used in its fleet. ACRO ] 43. Such
plans were to include coordination with Takata for parts recovery
from fleet vehicles, testing, and anticipated/future plans ``to
develop or expand recovery and testing protocols of the desiccated
PSAN inflators.'' Id.
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Takata has analyzed over 400 such inflators from the Ford program--
as well as 895 such inflators from the Nissan program. See Recall No.
17V-449. After a review of field-return data, on July 10, 2017, Takata,
determining a safety-related defect exists, filed a DIR for calcium-
sulfate desiccated PSDI-5 driver-side airbag inflators that were
produced from January 1, 2005 to December 31, 2012 and installed as
original equipment on certain motor vehicles manufactured by Ford (the
``covered Ford inflators''), as well as calcium-sulfate desiccated
PSDI-5 driver-side airbag inflators for those same years of production
installed as original equipment on motor vehicles manufactured by
Nissan (the ``covered Nissan inflators'') and Mazda (the ``covered
Mazda inflators'') (collectively, the ``covered inflators''). Recall
No. 17E-034.
Takata's DIR filing triggered Ford's obligation to file a DIR for
its affected vehicles. See 49 CFR part 573; November 3, 2015
Coordinated Remedy Order ]] 45-46.\2\ Ford filed a corresponding DIR,
informing NHTSA it intended to file a petition for inconsequentiality.
Ford Petition for a Determination of Inconsequentiality and Request for
Deferral of Determination Regarding Certain Ford Vehicles Equipped with
Takata PSDI-5 Desiccated Driver Airbag Inflators (August 16, 2017)
(``Petition'') (cover letter). Ford then petitioned the Agency, under
49 U.S.C. 30118(d), 30120(h), and 49 CFR part 556, for a decision that,
because Takata's analysis of the covered Ford inflators does not show
propellant tablet-density degradation, or increased inflation pressure,
and certain inflator design differences exist between the covered Ford
inflators and the covered Nissan inflators, the equipment defect
determined to exist by Takata is inconsequential as it relates to motor
vehicle safety in the Ford vehicles affected by Takata's DIR. Id. at 1,
11-16.\3\ In addition, citing its commitment to further investigation,
Ford stated it is expanding its acquisition, testing and analysis of
the covered Ford inflators, and requested the Agency allow Ford until
March 31, 2018 to complete certain testing and analysis before deciding
on the Petition. Id. at 16-20.
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\2\ Under 49 CFR 573.5(a), a vehicle manufacturer is responsible
for any safety-related defect determined to exist in any item of
original equipment. See also 49 U.S.C. 30102(b)(1)(C).
\3\ Ford also suggests differences in ``vehicle environment,''
between affected Ford and Nissan vehicles as a potential explanation
for inflator degradation-risk differences between the covered Ford
inflators and the covered Nissan inflators. See Petition at 2.
However, Ford does not elaborate on this suggestion elsewhere in its
Petition. See id. at 14-16 (focusing on design differences between
the covered Ford inflators and covered Nissan inflators).
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II. Classes of Motor Vehicles Involved

Ford's Petition involves approximately 3.04 million light vehicles
that contain the covered Ford inflators. These vehicles are:

Ford Ranger (MY 2007-2011)
Ford Fusion (MY 2006-2012)
Lincoln Zephyr/MKZ (MY 2006-2012)
Mercury Milan (MY 2006-2011)
Ford Edge (MY 2007-2010)
Lincoln MKX (MY 2007-2010)

Id. (cover letter).

III. Summary of Ford's Petition

Ford argues that Takata's DIR does not determine the covered Ford
inflators ``actually contain a defect at this time, or that they will
develop one over time,'' and that once Ford completes its engineering
analysis (by the end of March 2018), it will be able to supplement or
amend its Petition to ``allow the Agency to make a determination'' on
its Petition. See id. at 10, 19. In the interim, Ford states that it
will continue to obtain permanent replacement driver-side airbag
inflators so that its continuing analysis will not affect the
availability of parts if a remedy is needed. Id.
Ford's position that the defect is inconsequential rests on two
related arguments. First, in contrast to testing data pertaining to the
covered Nissan inflators, Ford contends Takata's analysis of the
covered Ford inflators does not show propellant-tablet density
degradation or increased inflation pressure. Id. at 11. Takata has
analyzed over 1,300 of its calcium-sulfate desiccated PSDI-5 driver-
side airbag inflators, which include approximately 423 inflators from
Ford Ranger vehicles \4\ and 895 inflators from Nissan Versa
vehicles.\5\ Such analysis involved both live inflator dissections and
ballistic testing. Id. Ford asserts that about 360 live dissections of
inflators obtained as part of Ford's field-recovery program demonstrate
``consistent inflator output performance''--specifically, measurements
of ignition-tablet discoloration, generate density, and moisture
content of certain inflator constituents did not indicate a reduction-
in-density trend. Id. at 11-12. Ford further contends that these
observations are supported by 47 ballistic deployment tests that showed
no inflator exceeding the production primary-chamber pressure
specifications. Id. at 12-13. Ford also emphasizes that Takata has not
observed pressure vessel ruptures or

[[Page 53563]]

pressure excursions on any desiccated PSDI-5 inflator, and that ``[t]he
maximum primary chamber pressure that Takata measured'' in covered Ford
inflators was about 15 MPa lower than that measured in a covered Nissan
inflator (which exhibited primary chamber pressure exceeding 60 MPa).
Id. at 14.
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\4\ Twenty of these inflators were from salvage yards, however,
``where the conditions used to store the parts cannot be
determined.'' Id. at 11.
\5\ In its DIR, Nissan provides this 895 figure; in its
Petition, Ford attributes ``approximately 1,000'' covered inflators
to Nissan's program. Compare Recall No. 17V-449 with Petition at 11.
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Second, and relatedly, Ford contends ``[t]here are design
differences'' in the covered Ford inflators when compared to the
covered Nissan inflators, and that such differences may explain
differences observed between the two inflator variants during testing.
Id. In short, Ford cites its inflator variant as having ``fewer
potential moisture sources'' because the inflators contain only two,
foil-wrapped auto-ignition tablets (instead of three that are not foil-
wrapped), contain divider disk foil tape, and utilize certain EPDM
generate cushion material (instead of ceramic) that ``reduces generate
movement over time, maintains generate integrity, and leads to
consistent and predictable burn rates.'' Id. at 15-16 (providing
table).
The remainder of Ford's Petition explains its ``commit[ment] to
further investigation of PSDI-5 airbag inflators.'' See id. at 16-18.
Because of this stated concern, including about data pertaining to the
covered Nissan inflators, ``Ford is expanding the scope of the sampling
and is involving leading industry experts to assess any potential risks
from desiccated PSDI-5 inflators in Ford products.'' Id. at 16. Ford
outlines a two-pronged plan for this expansion. First, Ford describes a
parts-acquisition program ``to gather approximately 6,000 desiccated
PSDI-5 driver airbag inflators'' from certain model year vehicles in
areas with high absolute humidity for what appears to be all vehicle
lines in which the covered inflators were originally installed.\6\ Id.
at 17. And second, Ford describes a continuation of inflator testing
and engineering analysis, which will engage third-party experts for
independent assessments. Id. at 17-18. The testing will include various
engineering analyses (comparisons of design within the PSDI-5 family,
statistical assessments, and ballistic modeling), inflator testing (CT
scanning and inflator disassembly), and propellant testing (moisture
content, closed-bomb burn rate, X-ray micro-computer tomography,
thermogravimetric/differential scanning calorimetry analysis). Id.
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\6\ Ford's Petition explicitly lists six vehicle lines,
comprising all affected Ford models except for the Fusion. See
Petition at 17. However, one of the six vehicle lines is simply
listed as ``2006-2007 MY Ford.'' Presumably, this refers to certain
MY Ford Fusions.
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IV. Request for Deferral of Determination

Ford has requested that NHTSA allow it additional time before
deciding on its Petition--specifically, until March 31, 2018--so that
it may ``complete its intensified and expanded inflator field study,
aging assessment, and testing on additional samples and vehicle types
to evaluate the performance of the Takata desiccated PSDI-5 driver
airbag inflators.'' Id. at 19. In making this request, Ford appears to
acknowledge the available data may not yet be sufficient for the Agency
to grant its Petition. Indeed, Ford notes that while its results to
date are ``good news for the safety'' of users of one of its six
affected vehicle models--the Ranger--``the results on the Nissan design
inflators are of concern.'' Id.
The Agency recognizes Ford's plans to expand its investigation and
to secure a supply of remedy inflators for affected vehicles if it
becomes needed. See id. at 3, 10. However, 49 CFR 556.4(b)(5) provides
that an inconsequentiality petition must set forth all data, views, and
arguments supporting that petition, and Ford does not adequately
justify why this provision does not preclude deferral here.
Specifically, NHTSA does not find Ford's request for deferral
reasonable under the circumstances or supported by the testing and data
it has collected to date. Indeed, Ford does not provide an explanation
for why it has not already undertaken the expansive investigation it
now proposes, and Ford's past efforts to evaluate the safety of the
covered inflators do not support granting a deferral. NHTSA requested
Ford's assistance in evaluating Takata calcium-sulfate desiccated PSDI-
5 driver-side airbag inflators in February 2016, and over seventeen
months later only about 400 covered Ford inflators have been tested.
Further, while the covered Ford inflators were original equipment in
six vehicle models (Ranger, Fusion, MKZ, Milan, Edge, and MKX), all
approximately 400 inflators harvested in Ford's field-recovery program
were from the same vehicle model (the Ranger). Moreover, the number of
inflators tested under Ford's program was less than half the number
tested under Nissan's program, and about seven percent of the
approximately 6,000 inflators Ford now proposes to test in only about
seven months.
It is difficult to reconcile Ford's ambitious plan with its prior
approach toward evaluating the safety of the covered inflators. Ford
has provided no compelling argument for the Agency to deviate from 49
CFR 556.4(b)(5).
For these reasons, NHTSA denies Ford's request for a deferral of
the NHTSA's decision on Ford's Petition. The Agency will decide on
Ford's Petition without consideration of Ford's planned additional
efforts as outlined in its Petition. Nevertheless, NHTSA recognizes
Ford's plans to further evaluate the safety of Takata calcium-sulfate
desiccated PSDI-5 driver-side airbag inflators, and encourages Ford to
move forward with those plans as described in its Petition--
particularly given the concern about these inflators that Ford has
expressed.
Accordingly, NHTSA hereby gives notice of its receipt of Ford's
Petition for a Determination of Inconsequentiality and Request for
Deferral of Determination Regarding Certain Ford Vehicles Equipped with
Takata PSDI-5 Desiccated Driver Airbag Inflators. And it is hereby
Ordered that:
1. The period for public comment on Ford's Petition shall run from
the publication of this decision through December 18, 2017; and
2. Ford's request for a deferral of NHTSA's decision on Ford's
Petition, so that Ford may complete its intensified and expanded
inflator field study, aging assessment, and testing on additional
samples and vehicle types, is Denied.

Authority: 49 U.S.C. 30101, et seq., 30118, 30120(h), 30162,
30166(b)(1), 30166(g)(1); delegation of authority at 49 CFR 1.95(a);
49 CFR parts 556, 573, 577.

Issued: November 9, 2017.
Stephen P. Wood,
Acting Chief Counsel.
[FR Doc. 2017-24829 Filed 11-15-17; 8:45 am]
BILLING CODE 4910-59-P

Document Created: 2017-11-16 03:53:39
Document Modified: 2017-11-16 03:53:39

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice of receipt of petition; notice of receipt of request for deferral, and of decision denying request for deferral.
Dates		The closing date for comments is December 18, 2017.
Contact		For legal issues: Stephen Hench, Office of the Chief Counsel, NCC-100, National Highway Traffic Safety Administration, 1200 New Jersey Avenue SE., Washington, DC 20590 (telephone: (202) 366-5263).
FR Citation		82 FR 53561

82 FR 53561 - Ford Motor Company, Receipt of Petition for Inconsequentiality and Decision Denying Request for Deferral of Determination

DEPARTMENT OF TRANSPORTATIONNational Highway Traffic Safety Administration

Federal Register Volume 82, Issue 220 (November 16, 2017)

DEPARTMENT OF TRANSPORTATION
National Highway Traffic Safety Administration