VicRoads lashed for ‘revenue over safety’ approach to Takata airbags

Car makers have claimed excessive red tape and a revenue-driven approach from VicRoads has exposed drivers to prolonged risk from Takata airbags.

Exclusive: Car makers have accused Victoria’s chief road authority of prioritising revenue over the safety of people driving vehicles with killer Takata airbags.

Victoria is the only state which has not pulled potentially deadly cars off the road by cancelling registrations — and the only state to ask manufacturers to pay administrative fees to get cars off the road.

It is understood VicRoads contacted car makers in February asking them to pay $24.90 per vehicle to warn people their registration will be cancelled.

None have agreed to the proposal.

Tony Weber, chief executive of the Federal Chamber of Automotive Industries, a body which includes manufacturers such as Toyota, Nissan and Honda affected by the issue, said he was disappointed in the “apparent pecuniary focus” of the Victorian Government.

“The money is not the problem,” Mr Weber said.

“The issue here is a Government that prioritises revenue over the safety of consumers — and this is especially disappointing when none of the other governments have mentioned payment.

“What price do they put on safety?”

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The Takata airbag scandal affects more than four million cars in Australia. Picture: Supplied

Roger Chao, VicRoads director of road user and vehicle access, said the transport authority has been working with all vehicle manufacturers to implement registration sanctions, targeting the highest-risk vehicles fitted with Takata alpha airbags.

“Registration sanctions will be a last resort and only put in place after all options have been exhausted to contact affected owners,” he said.

Victoria’s “last resort” approach differs from other states.

In order for VicRoads to consider deregistering a vehicle, manufacturers must prove to the ACCC that communication with customers has failed.

Car companies are working to contact customers by mail, registered post, phone calls, text messages, emails and personal visits.

Mitsubishi told the ACCC some owners “will refuse repeated notifications”, with motorists replying to safety notices with messages such as “stop calling me I don’t want it done for f--- sake”.

Deadly shrapnel from a faulty Takata airbag. Picture: Chip Somodevilla/Getty Images/AFP

An ACCC spokeswoman said it is “currently assessing” applications from car companies surrounding consumers who will not bring cars in for free replacement airbags.

While manufacturers have applied to have some cars and customers removed from mandatory recall requirements, the ACCC said “at this stage no applications under these provisions have been approved”.

Which means VicRoad’s deregistration proposal would not affect any cars at present.

ACCC figures show 1836 cars with Alpha airbags remained on Victorian roads at the end of February.

Manufacturers said the $46,000 in proposed fees is insignificant compared to around $1 billion spent rectifying the Takata crisis in Australia.

Nissan is one of the brands which has not agreed to VicRoads’ terms.

A spokeswoman for the brand said “we will support any actions that encourage consumers to replace Takata airbags in their vehicles as soon as possible”.

South Australia was the first state to block road access for Takata vehicles, announcing in September 2018 that cars would be refused registration from November 2018.

Manufacturers have until December 2020 to complete sweeping recalls of more than 4 million cars.

Honda Australia director Stephen Collins told reporters its recalls were 95 per cent complete last week, when he renewed calls for a Victorian registration ban for Takata vehicles.

Originally published as VicRoads lashed for ‘revenue over safety’ approach to Takata airbags