Failed Repairs from Recall Equals Potential Loss of Income
In the fast-paced world of automobiles, recalls are an unfortunate but necessary part of ensuring vehicle safety. From television and radio broadcasts to automated phone calls and social media, various channels are used to get the word out to the right people [1].
Recalls can range from minor typographical errors in owner's manuals to more significant issues affecting components such as seatbelt sensors, headlights, fuel locks, transmissions, steering, leaks, tires, brakes, and software [2]. Some car owners may choose to ignore recall notices due to a lack of time, perceiving the defect as minor, or fearing unexpected costs from dealers, despite recalls being free [3].
To address these concerns and increase the recall response rate, automakers and dealers are turning to modern, automated, and digital-first communication strategies. One such approach involves automating and personalizing recall outreach, such as sending SMS notifications tailored to the customer’s service readiness, which leads to higher engagement and faster appointment scheduling [1].
Another strategy is offering hands-free appointment scheduling without requiring customers to use links or involve staff, lowering friction in booking recall repairs [1]. Dealerships are also working on coordinating parts availability and staffing in advance to prevent walk-ins and reduce service disruptions, making recall repairs more convenient and reliable for customers [1].
Regulatory changes are also being considered to allow digital-first recall communications, like text messages as the initial contact method instead of mail, aligning with modern consumer communication habits and improving notice visibility [1].
By adopting these strategies, dealerships not only enhance safety compliance but also build customer trust and service loyalty. Ensuring recall repairs are done correctly, as Ford has implemented with software update verification, further improves customer confidence in the recall process [4][5].
Last year, there were 366 unique recalls affecting more than 20 million vehicles in the U.S. [6]. Ignoring recall notices can lead to dangerous outcomes on the road. In extreme cases, a civil suit could be triggered if a car owner ignores a recall notice and loans the vehicle to someone who is injured in an accident related to the unaddressed defect [7].
Moreover, dealers play a crucial role in getting the word out to affected owners about recall notices. A consumer who ignores a recall notice and sells the vehicle could potentially imperil the next owner [8]. To address this, the National Highway Traffic Safety Administration (NHTSA) is proposing monthly communications over multiple channels, including emails and text messages, to contact current vehicle owners [9].
As vehicles become more technologically complex, more software recalls seem inevitable. However, with improved communication strategies and early problem detection, the number of problem vehicles that end up on the road can be reduced [10]. A collaborative effort between NHTSA, automakers, state departments of motor vehicles, and dealerships is essential to ensure the safety of every vehicle on the road.
References:
[1] https://www.linkedin.com/pulse/recall-response-rates-modernizing-communication-strategies-david-stout/ [2] https://www.nhtsa.gov/recalls [3] https://www.npr.org/sections/morning edition/2021/05/05/994656223/car-owners-often-ignore-recalls-even-when-the-fix-is-free [4] https://www.forbes.com/sites/davidstout/2021/01/22/why-automakers-need-to-get-better-at-recalls/?sh=7c199f7557d0 [5] https://www.forbes.com/sites/davidstout/2021/01/22/ford-focuses-on-software-updates-to-improve-recall-process/?sh=c105235f1c81 [6] https://www.cbsnews.com/news/2021-auto-recalls-record-20-million-vehicles-recalled-in-2020/ [7] https://www.usatoday.com/story/money/cars/2021/05/05/car-recalls-ignoring-notices-can-be-dangerous-and-costly/49316857/ [8] https://www.usatoday.com/story/money/cars/2021/05/05/car-recalls-ignoring-notices-can-be-dangerous-and-costly/49316857/ [9] https://www.cnbc.com/2021/05/06/nhtsa-proposes-monthly-emails-to-owners-to-boost-recall-response-rates.html [10] https://www.autonews.com/automakers-suppliers/nhtsa-proposes-monthly-recall-emails-boost-response-rates
- In the automotive industry, connected cars are increasingly becoming a part of the supply chain, with software recalls being a growing concern as vehicles become more technologically complex.
- To improve efficiency in the recall process, the industry is exploring digital-first communication strategies, including automation, personalization, and hands-free appointment scheduling, which aim to increase customer engagement and trust.
- Regulation changes are being proposed to allow for initial recall communications via text messages, aligning with modern consumer habits, and enhancing notice visibility in the supply chain of transportation.
