What we examined (see Focus of the audit)

This audit focused on passenger motor vehicles sold in Canada, specifically passenger cars, SUVs, minivans, and light trucks such as pickups. We examined whether Transport Canada’s regulatory framework and its oversight of vehicle safety defects and recalls have been adequate to respond to emerging safety risks and issues in a timely manner. More specifically, we examined the process to make amendments to regulations for emerging technologies and issues. We also looked at Transport Canada’s oversight and analysis of public complaints, investigations, and monitoring of manufacturers’ recalls.

Why we did this audit

This audit is important because passenger vehicles must be as safe as possible to protect the lives of Canadians. Proper oversight of passenger vehicle safety and an up-to-date regulatory framework help ensure that Canadians are driving the safest vehicles.

What we concluded

We concluded that Transport Canada did not maintain an up-to-date regulatory framework that responded to emerging safety risks and technological issues. As a result, the approach failed to ensure that Canadian-driven passenger vehicles had the highest possible safety features and technologies. While the Department’s oversight of vehicle safety defects and recalls was adequate, Transport Canada knew little about the critical safety issues that manufacturers were investigating in their vehicles. This limited the Department’s ability to identify safety defects early and to influence manufacturers’ recalls.

What we found

The regulatory framework for motor vehicle safety

We concluded that Transport Canada did not maintain an up-to-date regulatory framework that responded to emerging safety risks and technological issues. As a result, the approach failed to ensure that Canadian-driven passenger vehicles had the highest possible safety features and technologies. While the Department’s oversight of vehicle safety defects and recalls was adequate, Transport Canada knew little about the critical safety issues that manufacturers were investigating in their vehicles. This limited the Department’s ability to identify safety defects early and to influence manufacturers’ recalls.

This is important because Transport Canada needs to integrate emerging safety risks and new technologies into the regulatory framework in a timely way so that Canadians are safe on our roads. Canadians must have access to the safest vehicles possible. Our regulatory framework should not prevent Canadians from accessing new safety features that will keep them safer on our roadways. Also, it should ensure that specific Canadian safety needs are properly addressed. These needs include climate, more variable hours of daylight, road infrastructure, and differences in the vehicle fleet. Finally, our regulations must be timely and based on evidence so the Department does not limit access to innovative products and create barriers to trade.

• Transport Canada did not maintain motor vehicle safety regulations in a timely and proactive manner

  Recommendation. Transport Canada should provide regular public updates on the status of its regulatory plans.

  Recommendation. Transport Canada should

  • publicly announce its intention to prepare or update regulations, and invite comments on technical feasibility and other considerations within a reasonable time limit;
  • actively seek input from expert stakeholders such as the insurance industry, medical associations, and police; and
  • publicly disclose a summary of all stakeholder comments, including technical and other considerations, within a reasonable time limit.

• Transport Canada had incomplete collision and injury data, and could not demonstrate how research informed safety regulations

  Recommendation. In developing new or modifying existing safety standards, Transport Canada should

  • assess whether its collision and injury data can adequately support evidence-based decisions based on its quality, reliability, and
  • take appropriate measures, including working with provinces, territories, and other stakeholders, to improve the quality and scope of data needed to inform decisions.

  Recommendation. Transport Canada should clearly disclose how it used evidence and scientific research to inform its development or modification of motor vehicle safety standards.

• Transport Canada did not have a long-term operational plan for the Motor Vehicle Safety Directorate

  Recommendation. Transport Canada should develop a long-term operational plan for the Motor Vehicle Safety Directorate. This plan should identify planned activities, budget, and level of effort needed to deliver on its mandate.

Oversight of defects

Overall, we found that Transport Canada adequately assessed complaints from the public to identify vehicle safety defects. However, it did not request information about critical safety issues that manufacturers were investigating, or their internal processes to identify safety issues.

This finding matters because assessing and documenting complaints helps identify defect trends and safety issues. Having knowledge about manufacturers’ internal processes for identifying safety issues, and gathering information about their ongoing safety-related investigations, would allow Transport Canada to identify safety defects early and influence manufacturer recalls.

• Transport Canada had internal processes to identify safety defects and trends, and it appropriately communicated with manufacturers

  Recommendation. We made no recommendations in this area of examination.

• Transport Canada had limited knowledge of manufacturer investigations related to critical safety issues

  Recommendation. Transport Canada should request from manufacturers information on their internal investigations into critical ongoing safety-related issues with their vehicles.

  Recommendation. Transport Canada should request information from manufacturers on their internal processes for identifying and reporting safety defects.

Safety recalls

Overall, we found that Transport Canada adequately assessed vehicle manufacturers’ efforts to complete safety recalls. However, Transport Canada advised us that manufacturers had difficulty identifying and contacting owners of recalled passenger vehicles in some cases, especially for those owning older vehicles. Efforts are under way with the provinces and territories to improve the repair rates.

This is important because identifying and repairing vehicles with safety defects in a timely manner reduces the risks to Canadians.

• Transport Canada ensured that manufacturers’ safety defect notifications were timely and complete

  Recommendation. We made no recommendations in this area of examination.

• Transport Canada monitored repair rates for recalled vehicles and was exploring ways to increase them

  Recommendation. We made no recommendations in this area of examination

Entity Responses to Recommendations

Transport Canada agrees with our recommendations, and has responded (see List of Recommendations).

Related Information

Report of the	Auditor General of Canada
Type of product	Performance audit
Topics	Safety and Security Transportation
Audited entities	Transport Canada
Completion date	15 September 2016
Tabling date	29 November 2016
Related audits

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