In light of more than 30 million vehicles being recalled because of faulty Takata airbags, Black Book and Fitch Rating joined forces on Tuesday not only to look at the impact of vehicle values for the units involved, but also what implications the situation might have on outstanding U.S. auto ABS transaction performance.

While both firms acknowledge the Takata airbag recall is historic in both the number of vehicles and brands impacted, there will be limited negative implications on the used-vehicle values of the related vehicle brands and models, according to Black Book. Therefore, outstanding U.S. auto ABS transaction performance should remain largely unaffected, according to Fitch Ratings.

Anil Goyal, vice president of vehicle valuation and analytics at Black Book, explained the recall impacts older vehicles from 2001 through 2008 model years across 11 manufacturers covering nearly 34 million vehicles.

Despite the size and the breadth of the recalls, Goyal emphasized it is unlikely to have any significant impact on a specific brand or a vehicle’s value. In addition, since the vehicles involved are more than 7 years old, he added the dollar impact on vehicle values will be minimal.

Black Book’s analysis regarding recalls on 37.5 million vehicles in 2014 and resulting collateral data trends showed that recalls did not adversely impact normal retention patterns of a vehicle.

“The size of the recall makes it uniquely complicated to execute and it may take years to complete. There are significant logistical issues in getting the new parts and operational issues in performing the repairs. The execution of the repairs may vary by brand and may become an important factor in a brand's reputation,” Black Book said.

Black Book added depreciation rates did not accelerate on models impacted by the vehicle recalls in the examples discussed. Thus, Fitch expects little adverse effect on used-vehicle values overall, including residual values.

“Auto ABS pools are typically diversified across a range of models which should limit the potential impact on loss rates,” Fitch senior director Hylton Heard said. “Further, most transactions are backed by recent vintage vehicles not affected by the recall.”

Vehicles recalled will be repaired at franchised dealerships, with the cost borne by the specific manufacturers and Takata, and not passed onto outstanding auto ABS trusts.

According to the National Highway Traffic Safety Administration, there are at least eight OEMs that have issued vehicle recalls for this issue, including BMW, Chrysler, Ford, Honda, Mazda, Nissan, Toyota and Mitsubishi.