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Essential Points
- Not every recall is unfavorable and can actually be a proactive approach to deal with potential issues before they escalate.
- Recalls are more frequent during the initial years of a new model as manufacturers iron out glitches in the vehicle’s configuration.
- A majority of recalls do not significantly impact a company, although some can lead to the bankruptcy of the company concerned, as observed in the case of the Takata airbag recall.
For a car holder, one of the most distressing situations might involve a continual series of visits to and from the dealership due to what seems like an endless array of recalls. Dealing with the stress of the recall itself and sorting out a loaner or rental car arrangement can be an exasperating experience even for the most composed of vehicle owners. Certain brands may have a reputation for this perpetual recall cycle more than others, such as American vehicle manufacturer Ford, which has issued more recalls in a given year than any other American automaker for the third consecutive year as of 2023. Throughout the 2023 calendar year, the company issued 54 recalls, impacting a remarkable 5.7 million vehicles. While this figure was down by 21% from the 65 recalls affecting over 8.6 million vehicles in 2022, this “improvement” may not necessarily be a badge of honor for the automaker.
But, are all recalls negative? We frequently use the number of recalls issued as a means of negatively evaluating an automaker, yet there is a perspective that not all recalls are unfavorable. Before delving into that, it is helpful to grasp the basics of recalls.
What Exactly Is a Recall?
- Recalls can be voluntary but might be compelled by the NHTSA
- They can pertain to minor defects or critical problems
In the United States, the entity responsible for the issuance of automotive recalls is the National Highway Traffic Safety Administration (NHTSA), a division of the U.S. federal government that is under the Department of Transportation and prioritizes transportation safety across the states. Put simply, the NHTSA is essentially the de facto authority in automotive regulations for the states in nearly every area. While certain state entities have contested this, such as the California Air Resources Board (CARB), the NHTSA is deemed to have the ultimate say in almost every aspect related to automobiles. This includes recalls, which commence with the NHTSA’s Office of Defects Investigation. The office employs a risk-based method to evaluate the potential severity and frequency of flaws it identifies.
This process involves gathering information about potential flaws from consumers, manufacturers, law enforcement, the media, and even online sources (which have proven particularly useful with the rise of social media). Upon receiving a sufficient number of reports from consumers pointing out a consistent trend or common issues, the NHTSA can launch an investigation into the flaw. Following the completion of this investigation, a recall will be instigated if the NHTSA deems it necessary based on the data collected. While the NHTSA can enforce a recall, automotive manufacturers can also opt to initiate recalls voluntarily, while the other side of the coin entails the NHTSA retaining the authority to mandate a recall through the legal system.
While the influence wielded by the NHTSA concerning recalls may make them all seem inherently risky, that is far from the truth. Certainly, some are life-threatening to the extent that an immediate “cease driving” directive is issued on the vehicle, while others are as trivial as spare tires being dispatched with incorrect stickers on them.
The Most Extensive Recall Ever
An instance that falls into the former category is the Takata airbag recall, which had a significant impact on the automotive sector and the future of automotive safety. The recall affected 67 million vehicles across numerous brands and commenced in 2008 before being elevated to a much higher level in May 2015. The rationale behind the recall was the utilization of Takata Corporation’s airbag inflators, which employed ammonium nitrate as the propellant.
However, no chemical drying agent was incorporated, implying that in regions with high humidity and temperature variations, the propellant could deteriorate. Upon degradation, the propellant would burn excessively rapidly, leading to the rupture of the metal inflator itself upon airbag deployment. Consequently, this would propel metal shards throughout the cabin, posing a significant risk of injury and, in an extreme scenario, even the risk of fatality.
Feds Take Next Step In Investigation Of 52 Million Non-Takata Airbag Inflators
The NHTSA wants a recall, but the supplier is arguing there’s no reason…
The principal reason behind the fame of the Takata airbag recall being designated as the largest in history is due to the extensive use of its inflators. Although the recall initiated with Honda vehicles in 2008, it rapidly encompassed other brands like Toyota, Nissan, Subaru, Ford, BMW, Volkswagen Group vehicles, and more. Moreover, each automaker incorporated the inflators into multiple models, leading to around 67 million Takata airbags being recalled across tens of millions of vehicles as of February 2024.
The recall underscored the apparent inadequacy of regulatory oversight in the automobile sector concerning critical safety features specifically, prompting a thorough reevaluation of the scrutiny on airbag inflators and other safety mechanisms. It also had severe repercussions for Takata Corporation, as the company was compelled to file for bankruptcy in 2017 due to the financial and reputational impact from the recall.
Are All Recalls Bad?
As a general rule, not all recalls are negative. In rare instances, recalls may be prompted by fatalities or serious injuries involving individuals in an affected vehicle, but in most cases, recalls are preemptive measures taken by automakers to address potential issues reported through customer complaints. This means even the most dependable vehicles can undergo recalls, which usually don’t reflect on their overall reliability and safety but are mainly indicative of a defective component that manufacturers aim to rectify early on.
Recalls are not exclusively reactionary; they are also proactive actions by manufacturers to rectify potential issues before they escalate.
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Recalls Are More Common During A New Model’s First Years
Consequently, this is also the reason why recalls are more frequent during the initial years of a new model. While the saying of avoiding first model years in a new generation for various reasons holds true, the impact of recalls on early model years is also a contributing factor. This is typically due to manufacturers ironing out different issues or bugs in the vehicle’s setup during the initial years of a model generation. Official NHTSA data substantiates this, showing a higher frequency of model-specific recalls at the start of a particular generation, and a scarcity of recalls for later model years.
10 Largest Recalls In Automotive History
When it comes to recalls, most are usually minor. However, there have been several notable ones throughout automotive history.
Recalls Do Not Affect a Company, Unless Very Serious
Moreover, it’s inferred by this general rule that most recalls don’t have a considerable impact on a company, which holds true. The gravity of the Takata airbag recall and its potential repercussions underscore an exceedingly rare scenario in which a company is significantly impacted by a recall. A comparable event is the Chevrolet Bolt electric vehicle battery recall affecting the 2017-2022 generation.
General Motors and LG Energy Solution, the battery providers for the vehicle, were obligated to compensate a settlement of $150 million, with affected individuals receiving a personal payout ranging from $700 to $1400. The recall was initiated due to two specific production flaws in the batteries supplied by LG for the vehicles, resulting in numerous fires. The recall impacted 140 thousand Bolt EV and Bolt EUV vehicles; although it tarnished the vehicle and brands’ reputations, both Chevrolet and Bolt are still thriving today, demonstrating that most recalls do not have severe repercussions on a company, especially if voluntary.
Where to Verify Recalls
For individuals in the United States of America, the NHTSA is the supreme source to determine if a vehicle has an active recall. Some second-hand shopping platforms also alert potential buyers if a vehicle they are considering has an open recall. Major recalls prompt auto manufacturers to offer dedicated websites where owners can inspect if their vehicle is impacted. These websites may give specific instructions based on the nature and severity of the recall, such as advising owners to contact the manufacturer and arrange for their vehicle to be towed rather than driving it themselves.
The Key Point: Recalls Indicate Issues, But Not All Recalls Are Negative
Essentially, a recall signifies a problem, yet dependability and ownership issues cannot be determined solely based on recalls. A recall essentially involves a manufacturer rectifying a problem at their own expense, which is advantageous for the consumer. However, an abundance of recalls often suggests brand-level concerns from a quality control standpoint, and excessive recalls typically indicate that a particular automaker is not prioritizing the highest standards.
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