Minister of Transport gets new powers

Recalls-300The Canadian government may get tougher on how automotive recalls are handled.

On June 3, the Honourable Lisa Raitt, Minister of Transport, introduced legislation in the House of Commons to, “better protect Canadian motorists through new powers to order vehicle recalls.”

This new legislation was announced previously in the 2015 budget.

These new powers, which were introduced through the Safer Vehicles for Canadians Act and are at the “proposed” stage, would allow the Minister to order a company to issue a recall and require manufacturers to fix defective or non-compliant vehicles.

Under these new found powers, the Minister could also order manufacturers or importers to pay for repairs and ensure new vehicles are fixed before they are sold to the public.

Manufacturers and importers could face fines of up to $200,000 per violation, per day, with no maximum cap through new administrative monetary penalties. These fines are an alternative to prosecution to help address safety issues quickly.

Considering the upcoming elections and the legislative summer break, plus the fact this is all under review by the legislature, it will likely be up to the next government to go ahead or not with this new legislation.

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