Total Recall: What’s Happening With All the Auto Recalls?

Thursday, October 23, 2014

Brad Boyer, GoLocalPDX Auto Expert

GM's Chevrolet Suburban, via Wikimedia Commons

It appears new car manufacturers are in the process of a remake of the 1990 Arnold Schwarzenegger movie, Total Recall. According to the National Highway Traffic Safety Administration, the number of vehicles recalled in 2014 hit a record high of over 56 million vehicles and counting.

The recall fury is pretty much across the board with even Ferrari in the mix recalling a few thousand 458 sport cars with faulty trunk latches. But General Motors is the car maker with the biggest image rebuilding issue to face with the recall of its vehicles ranging over 30 million cars and trucks.

The obvious first question is, “Why?” The answer isn’t a simple single source but more complex that will probably take some time and rear view evaluation to fully emerge.

One issue is that new vehicle systems are becoming more complex with not only government mpg requirements but marketplace competition. There is a technology race in place and its quite likely that systems are being rolled out before they are fully vetted for performance in order to beat another manufacturer.

General Motors' Fatal Mistake

Another issue is the age-old problem of a manufacturer cutting corners and ignoring problems in order to generate a better bottom line.

General Motors, this year, had a massive recall for faulty ignition switches that contributed to serious injuries and even deaths. To date, according to the attorney in charge of the case, there have been 29 deaths as a direct result of the faulty switches. The switch can slip out of place which would disable an air bag. It was shown that some executives knew of the problem but failed to act in hopes that they could avoid costly replacements.

GM is providing information and a website where owners can check if their vehicle is on the list. GM provides information on this website for recalls announced on or after August 20, 1999. This information is available for vehicles in which repairs have not been completed. To check for recalls on your GM vehicle, enter your Vehicle Identification Number.

This week, recalls were in the news again. The government stated that there is a potential crisis with over 4.7 million defective air bags. It urged everyone to not ignore this issue and get their cars fixed, and it related to airbags.

When the air bags in question inflate, they can rupture and metal pieces can be propelled out with the air bag which can result in serious injury. Officials said at least four people have died from the faulty air bags and there could be as many as 20 million vehicles in the United States that have the faulty air bags.

The NHTSA said they have been looking in to this issue since June. A Tokyo company, Takata Corp which also manufactures seat belts, steering wheels and other parts manufactured the faulty air bags. The recalled vehicles include Toyota, Mazda, BMW, Nissan, GM, Ford, and Honda. The NHTSA has referred people to check to see if their vehicle is recalled by going to www.safercar.gov.

Recalls have affected other leading car manufacturers too. A brand that most people only view as the leader in the industry for quality has had its reputation sullied dramatically with recalls and heavy fines. In 2009 and 2010, Toyota recalled over 12 million vehicles but top officials undersold the danger which resulted in injuries and fatalities.

According to a US Department of Justice release not only did Toyota cover up defective vehicles to avoid costly repairs but the company also attempted to bury the results of an investigation by the Department of Justice into the original cover-up. The government recently fined Toyota $1.2 billion as much for the defects but the cover up and conspiracy as well. The officials showed that faulty floor mats were the cause for sticky accelerators. To make things worse, Toyota declared the issue fixed but, in fact, nothing had been done to correct the problem.

Chrysler has not been immune to the recall bug. It recently recalled over 230,000 sport utility vehicles to prevent a fuel pump problem. The issue was the faulty pump could cause vehicles to stall. The automaker, learning from the mistakes of its competition, jumped on this issue early and has said it didn’t believe there had been any accidents or injuries.

Toyota Corolla, via Wikimedia Commons

Are Recalls Good For Business?

While a number of the recalls are very serious, not all are life threatening. Dealerships are prepared to handle these issues and want to make it right. The most surprising aspect is how many vehicle owners never address the recalls. NHTSA reported that only 75% of the vehicles recalled end up being repaired.

There are several reasons for this. Some vehicles are at pre-owned dealerships and the less than reputable ones don’t take care of the car but insist it passes muster to potential customers. Also, with vehicles being passed through family members or sold multiple times, the recall notices may never make it to the correct person. In other cases, the recall notices get tossed out as junk mail. Carfax estimates that over 36 million vehicles in the US under recall have not been repaired. It maintains a database of every vehicle by vin number and you can check to see if your vehicle or one you are considering as a purchase is affected by all the recalls and if the work has been completed. Check the Carfax site at www.recall.carfax.com

You’d think that recalls would be bad for the car business. But a look at General Motors’ sales numbers in the late summer showed that the company had actually increased in sales volume and market share.

Think about it like this: For dealers, the biggest hurdle is getting a potential buyer to come into the dealership. If someone has to come in for a recall-related repair and has 30-45 minutes to kill, what better place to do that than in the new car showroom. . .

Brad Boyer is owner of Carcierge, a car concierge company providing expert assistance on anything car-related. He also co-hosts Test Miles on 101.1 FM KXL on Sundays, and is a founding member of the Northwest Auto Press Association. You can email him your car-related questions at [email protected].

Banner Photo Credit: iStock