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Automakers, including Toyota and General Motors, were recently caught by the U.S. regulator for deliberately hiding product defects in an attempt to avoid massive recalls. Interestingly, regulators in the United States and United Kingdom employ different policies in informing consumers about potential defects: the U.S. regulator publicly announces all ongoing investigations of potential defects to provide consumers with early information, whereas the UK regulator does not. To understand how these different announcement policies may affect cover-up decisions of automakers, we model the strategic interaction between a manufacturer and a regulator. We find that, under both countries’ policies, the manufacturer has an incentive to cover up a potential defect when there is a high chance that the defect indeed exists and it may inflict only moderate harm. However, if there is only a moderate chance that the defect exists, only under the U.S. policy does the manufacturer have an incentive to cover up a potential defect with significant harm. We show that the U.S. policy generates higher social welfare only for very serious issues for which both the expected harm and recall cost are very high and the defect is likely to exist. We make four policy recommendations that could help mitigate manufacturers’ cover-ups, including a hybrid policy in which the regulator conducts a confidential investigation of a potential defect only when it may inflict significant harm. This paper was accepted by Vishal Gaur, operations management.

International audience; The six axis robots are widely used in automotive industry for their good repeatability (as defined in the ISO92983) (painting, welding, mastic deposition, handling etc.). In the aerospace industry, robot starts to be used for complex applications such as drilling, riveting, fiber placement, NDT, etc. Given the positioning performance of serial robots, precision applications require usually external measurement device with complexes calibration procedure in order to reach the precision needed. New applications in the machining field of composite material (aerospace, naval, or wind turbine for example) intend to use off line programming of serial robot without the use of calibration or external measurement device. For those applications, the position, orientation and path trajectory precision of the tool center point of the robot are needed to generate the machining operation. This article presents the different conditions that currently limit the development of robots in robotic machining applications. We analyze the dynamical behavior of a robot KUKA KR240-2 (located at the University of Bordeaux 1) equipped with a HSM Spindle (42000 rpm, 18kW). This analysis is done in three stages. The first step is determining the self-excited frequencies of the robot structure for three different configurations of work. The second phase aims to analyze the dynamical vibration of the structure as the spindle is activated without cutting. The third stage consists of vibration analysis during a milling operation.