Coinciding with the National Highway Traffic Safety Administration rolling out its new recall database, NADA Used Car Guide discovered results of its automaker recall perception survey showed an overwhelming majority of consumers are paying more attention to recalls today than in the past.
Based on an online survey conducted on NADAguides.com in response to the record-breaking number of vehicle recalls occurring during the first half of the year, 88 percent of respondents said they are more aware of recalls now than in the past.
NADA UCG’s survey also revealed that 71 percent of respondents held the opinion that recalls have grown substantially over the past few years. That sentiment is counter to NHTSA data that shows both the number of distinct recalls and vehicles involved have remained fairly consistent since the mid-1990s.
“Today, the public is receiving news of recalls in manners unlike ever before. Instead of people proactively accessing information, the media is ‘feeding’ reports to people through their Facebook news feed and tweets on their Twitter accounts,” NADA UCG analysts said.
“As such, it is possible that drivers are now being notified of recalls as they occur as opposed to actively paying more attention to them on their own,” they continued.
According to the survey, both the number of recalls issued and the seriousness of the safety defect influence future purchase decisions.
A sizable 44 percent of respondents agreed that regardless of problem severity, the more an automaker issued recalls, the less likely they would be to purchase one of their new or used vehicles down the road. Meanwhile 33 percent of participants were neutral and 23 percent disagreed.
However NADA UCG executive automotive analyst Jonathan Banks pointed out that consumer purchase behavior tells a different story. Banks referenced the turmoil General Motors encountered over the massive recall of older models with defective ignition switches.
"So far there's been only mild evidence to suggest that used GM prices are being affected by the recalls,” Banks said. “Chevrolet's used-car prices have been steadily gaining ground on the competition over the past few years, but we have noticed a relatively small 1-2 percentage point drop in this improving trend since April.”
By comparison, Banks noted, Toyota's price advantage over the competition fell by 20 percentage points within months of the automaker issuing a series of recalls related to unintended acceleration in 2009 and 2010. He suggested the timing of the two recalls likely had an effect on these price changes.
Banks pointed out that Toyota’s set of recalls was the first instance in which social media accelerated the spread of news.
“Consequently, this development in technology may actually be helping GM as the public has become increasingly desensitized from much of the ‘noise’ generated by the media,” Banks said. “Whereas the Toyota incident came first and was met with much astonishment, sequels rarely create as much buzz, with GM's recall being less shocking to the public in today’s digital world.”
In a development the National Automobile Dealers Association said will help stores, the National Highway Traffic Safety Administration unveiled a new, free, online search tool both dealers and consumers can use to find out if a vehicle is directly impacted by a recall.
Also becoming effective on Wednesday under new NHTSA mandate, all major light vehicle and motorcycle manufacturers are required to provide VIN search capability for uncompleted recalls on their own websites. Officials indicated this data must be updated at least weekly.
Current NADA chairman Forrest McConnell shared how these moves by federal regulators will assist used-car departments.
"The new online look-up tool will help new-car dealerships identify whether a used car or light truck has an unremedied safety recall prior to making a purchase or taking in a trade,” said McConnell, who is a Honda/Acura dealer in Montgomery, Ala. “It will also help dealerships to determine whether used vehicles in inventory are under recall and to provide used-car shoppers with useful safety recall information.
"To improve vehicle safety, NADA urges every car owner who receives a recall notice from a manufacturer to visit his or her local new-car dealership to have the vehicle inspected, and if necessary, fixed at no charge,” he continued. “Historically, less than 70 percent of all recalled vehicles get fixed. Our goal is to see 100 percent of those vehicles remedied.”
Perhaps, this new website will help get to that level.
NHTSA indicated site users can identify uncompleted recalls by entering the vehicle identification number (VIN). After entering the VIN number into the field, results will appear if the consumer has an open recall on their vehicle, and if there are none, owners will see “No Open Recalls."
In addition, NHTSA is working with NADA to help ensure that franchise dealerships across the United States become aware of and understand how to use the new VIN search tool.
“Just as every single automaker should never hesitate to recall a defective vehicle, consumers should never hesitate to get their recalled vehicle fixed,” NHTSA deputy administrator David Friedman said. “By making individual VIN searches readily available, we’re providing another service to consumers — the peace of mind knowing that the vehicle they own, or that they are thinking of buying or renting, is free of safety defects."
U.S. Transportation Secretary Anthony Foxx offered a similar stance about the new website, which can be found at www.safercar.gov/vinlookup.
“Safety is our highest priority, and an informed consumer is one of our strongest allies in ensuring recalled vehicles are repaired," Foxx said. “Starting today car owners, shoppers, and renters can find out if a specific vehicle has a safety defect that needs to be fixed — using our free online tool.”
The industry set a new record as more than 37 million vehicles have been recalled so far this year.
“AAA applauds the launch of the NHTSA vehicle identification database that enables consumers to identify the status of any vehicle recall by vehicle identification number (VIN). The huge volume of recalls from automobile makers just this year clearly points to the need for better consumer access to data related to the safety of their vehicle,” AAA officials said.
“If accurately maintained by OEMs, the database will provide a single-source tool to help millions of motorists more easily find recall information,” they continued. “The information will also inform prospective automobile purchasers of unresolved recalls. This will go a long way in helping consumers ensure their vehicle is safe to drive.”
Ford announced six more recalls of late-model vehicles, totaling more than 240,000 vehicles.
The largest of the campaigns covers 159,395 units — the Ford Focus ST and Escape from the 2013 and 2014 model years. These North American vehicles are equipped with the 2.0-liter engine.
Blue Oval officials explained that in some of the affected vehicles, there may be engine wiring harnesses with splices that were insufficiently compressed during the supplier manufacturing process.
“Insufficient compression in the engine wiring harness splices may cause erroneous signals to the powertrain control module that may affect engine performance,” Ford spokesperson Kelli Felker said in a message to Auto Remarketing.
“This may result in an engine malfunction indicator light, reduced engine power, hesitation, other engine drivability symptoms or engine stall,” she continued. “Engine stalls while driving with no warning may increase the risk of a crash.”
Felker emphasized no accidents or injuries have been attributed to this condition. Franchised dealers have been instructed to replace the affected wiring splices.
The Ford Focus ST vehicles included in this recall were built at Michigan Assembly Plant between Feb. 14, 2012 and Oct. 14, 2013. The Escape vehicles were manufactured between Oct. 5, 2011 and April 1, 2013 at the Louisville Assembly Plant.
As of July 31, Felker indicated approximately 133,000 of the potentially affected vehicles were in the U.S. with an additional 359 in the federalized territories. Approximately 25,400 units were in Canada, and 789 were in Mexico.
Ford Recalls More Than 83K Units to Correct Transmission Issue
Possible improper installation of a transmission component triggered Ford to recall 83,250 cars and SUVs, according to documents from the National Highway Traffic Safety Administration.
The specific vehicles covered in this campaign include:
— 2012-2014 Ford Edge
— 2013-2014 Ford Flex
— 2013-2014 Ford Taurus
— 2013-2014 Lincoln MKS
— 2013-2014 Lincoln MKT
— 2012-2014 Lincoln MKX
In the affected vehicles, NHTSA explained the halfshaft retention circlip may not have been properly installed, and as a result, the halfshaft may move outward and disengage from the linkshaft.
“If the halfshaft and linkshaft become disengaged, power will no longer be transmitted to the wheels, increasing the risk of a vehicle crash,” federal officials said. “Additionally, if the parking brake is not applied before exiting the vehicle, the vehicle may roll away despite the transmission being placed in 'Park', increasing the risk of injury to exiting occupants and bystanders.”
Ford told NHTSA it will notify owners, and franchished dealers will inspect the vehicles to make sure that the halfshaft is properly retained. If it is not, dealers will replace the linkshaft and also replace the halfshaft if it shows evidence of spline damage, free of charge.
The recall is expected to begin by Aug. 29. In the meantime, owners may contact Ford customer service at (800) 392-3673 and reference recall No. 14S10.
3 Other Recalls
The remaining recalls from the Blue Oval are considerably smaller, including:
—Approximately 1,300 Ford Transit vehicles in North America from the 2015 model year due to a potential brake fluid leak at the joint between the rear brake hose and brake caliper.
—Approximately 600 Ford Transit cargo vans in North America from the 2015 model year due to a potential issue with the windowless sliding doors.
—Approximately 1,300 Lincoln MKC vehicles in North America from the 2015 model year because some of the affected vehicles may have windshields that may not conform to the requirements of FMVSS 205, which specifies that no bubbles or other defects are allowed in the glass.
A potential airbag mechanism malfunction is prompting Jaguar Land Rover North America to recall 40,551 SUVs, according to documents from the National Highway Traffic Safety Administration.
The recall covers the Land Rover LR2 from the 2010 through 2015 model years as well as the Range Rover Evoque vehicles from the 2012 and 2013 model years.
NHTSA indicated a component within the Occupant Classification System (OCS) Electronic Control Unit (ECU) may fail, resulting in the front seat passenger air bag being totally or partially disabled.
“In the event of a crash necessitating air bag deployment, if the air bag is disabled, the air bag may not deploy or may not deploy properly, increasing the risk of injury to the front seat passenger,” NHTSA officials said.
Land Rover told federal officials that it will notify owners, and franchised dealers will update the Restraint Control Module software, free of charge. The recall is expected to begin on Aug. 30.
In the meantime, owners may contact Land Rover customer service at (800) 637-6837 and mention recall No. P046.
Pick an automaker, domestic or import, and they’ve probably recalled thousands of vehicles so far in 2014. In light of this year setting a new record for recalled vehicles, Potratz Partners Advertising shared two separate recommendations aimed at helping dealerships use recalls to improve both the service and sales departments.
“Despite the negative aspect of a vehicle recall, it does present dealerships with a great opportunity to be able to drive not only service traffic, but sales traffic as well,” said Samantha Cunningham, vice president of account services at Potratz during a recent installment in the company’s “Hard Facts” video series.
To improve the service drive, Cunningham suggested that dealers enhance the content and capabilities of their websites.
“We need someone to submit a lead form, not just schedule an appointment,” Cunningham said. “Why not build a page specifically for vehicle recalls?”
Turning next to the sales area, Cunningham explained the strategy by first considering scenarios not associated with the auto industry.
“Think about it this way. Have you ever experienced frustration because something is broken and you feel like you consistently have to repair it? Maybe your phone or your dishwasher,” Cunningham said. “Think about the frustrations a customer might be experiencing if they’re getting something regularly about a recall that’s pertaining to the vehicle they’re currently driving.
“It’s a great opportunity leverage the situation and maybe make a conquest from another manufacturer,” she added.
To watch the entire video titled, “Make Your Recalls Work for You,” click the window at the top of this page.
National Highway Traffic Safety Administration officials said problems triggered by the use of winterized fuel prompted Volkswagen of America to recall more than 150,000 crossovers.
Volkswagen is recalling the Tiguan from the 2009 through 2014 model years that were manufactured from July 2007 through June of this year. The recall encompasses a total of 151,389 units.
“When using winterized fuel in certain conditions, bubbles may form in the fuel system, which could result in the vehicle stalling,” NHTSA said. “A vehicle stall increases the risk of a crash.”
Volkswagen told regulators the automaker will notify owners, and franchised dealers will update the vehicle's software to increase the fuel pump pressure, free of charge.
The recall is expected to begin on Aug. 19.
In the meantime, owners may contact Volkswagen customer service at (800) 822-8987 and mention recall No. 24AV/2W.
Hyundai Motor America announced recently that it has resolved a situation with the National Highway Traffic Safety Administration regarding the 2013 recall of certain Genesis sedans with brake fluid issues.
NHTSA inquired about the recall, which affected approximately 43,500 Genesis sedans in the 2009-2012 model range, regarding the timeliness of reporting the issue. The company will pay $17.35 million in civil penalties as part of settling the agreement.
David Zuchowski, the president and chief executive officer of Hyundai America, says the company has gone to work to prevent this from happening again.
“In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements,” Zuchowski said, “and enhancing the ability of the U.S. leadership team to readily respond to regulatory reporting requirements.”
Hyundai had issued a Technical Service Bulletin to its dealers to replace brake fluid in the affected vehicles but did not file a safety recall until after the NHTSA had already opened an investigation. The company says there have been no reported fatalities or serious injuries due to the issue and that the majority of the affected Genesis vehicles have been repaired.
“Hyundai remains committed to making safety our top priority,” Zuchowski said, “and is dedicated to ensuring immediate action in response to potential safety concerns including the prompt reporting of safety defects.”
In Other Recall News
GM announced Thursday its updated year-to-date recall numbers along with four new recalls.
U.S. Total: 25,754,356
GMNA Total: 29,079,765
Aug. 7 Recalls:
—202,115 certain 2002-04 Saturn VUEs vehicles
—48,059 certain 2013 Cadillac ATS & Buick Encore vehicles
—14,940 certain 2014-15 Chevrolet Impala vehicles
—1,968 certain 2009-10 Chevrolet Aveo & 2009 Pontiac G3 vehicles
—1,919 certain 2014 Chevrolet Spark vehicles
For a comprehensive look at the current year-to-date GM recalls, click here.
Last month, one of the U.S. senators from the Empire State urged the Federal Trade Commission to take action to create more regulations in connection with dealers selling vehicles with open recalls that haven’t yet been repaired.
Then on Wednesday, the Department of Consumer Affairs in New York City launched an investigation of 200 dealerships within the Big Apple to discover whether they are retailing unrepaired, recalled vehicles.
As part of the investigation, DCA commissioner Julie Menin issued subpoenas to 200 dealers, forcing them to provide several materials, including:
— Their policies on selling unrepaired recalled vehicles
— Data to reveal how many such vehicles they have sold in the past year
— Proof of whether the consumer was notified at the time of sale
DCA enforces a New York City law that requires dealers to certify that their vehicles are “roadworthy,” and prohibits dealers from “misleading” consumers as to the safety of their vehicles.
Under city law, Menin indicated that a vehicle with an open recall that is unrepaired is not deemed to be roadworthy.
“More cars have been recalled in 2014 than any other year on record,” said Menin, who was appointed to her post by New York Mayor Bill de Blasio on April 24. “We’re not going to wait for tragic statistics to demand that dealers repair these ticking time bombs.
“Dealerships who have sold unrepaired recalled cars must take responsibility and notify their consumers immediately to repair the vehicles,” she continued. “Consumers shouldn’t have to wait for new legislation, a court battle, or a tragedy, to know the car they bought is safe as required by law.”
Along with choosing some stores at random, Menin noted that subpoenas were issued to dealerships that have watched by DCA, including:
— Stores that have received a past violation for selling a vehicle that was not certified as roadworthy
— Dealerships that was inspected or received complaints that contain terms associated with safety defects
Although not specifically about recalled vehicles, the agency indicated complaints contained terms such as tires, brakes, defect, lemon and repair.
“The majority of companies were selected at random based on the percentage of licensees in each borough in order to obtain information that is representative of the industry citywide,” DCA officials said.
“DCA will ensure that any dealer found to have sold a recalled car that was not repaired at time of sale in the past year, notify the costumer and make any repairs that are necessary at the dealers’ expense and stop selling unrepaired recalled used cars in the future,” they went on to say.
The development in the Big Apple comes after Sen. Chuck Schumer pushed the Federal Trade Commission to create another regulatory hurdle for dealers to clear in order to sell used vehicles, using an incident allegedly involving a truck sold by a CarMax store in California as leverage to further the campaign.
The New York Democrat sent a letter late last month to the FTC asking the agency to immediately direct dealers that sell used vehicles to change any policy that may potentially allow the sale of recalled vehicles without first fixing safety defects.
More details about Schumer’s actions are contained in Auto Remarketing’s report available here.
The National Highway Traffic Safety Administration said Hyundai is recalling 883,000 Sonatas from the 2011 through 2014 model years because of a transmission issue.
NHTSA determined the shift cable may detach from the shift lever pin in the affected vehicles manufactured between Dec. 11, 2009 and May 29.
“If the transmission shift cable detaches while the vehicle is being driven, the transmission gear selection may not match the indicated gear and the vehicle may move in an unintended or unexpected direction, increasing the risk of a crash,” officials said.
“Furthermore, when the driver goes to stop and park the vehicle, despite selecting the position, the transmission may not be in park,” NHTSA continued. “If the vehicle is not in the park position, there is a risk the vehicle will roll away as the driver and other occupants exit the vehicle or anytime thereafter.
“A vehicle rollaway increases the risk of injury to exiting occupants and bystanders,” officials went on to say.
Hyundai told NHTSA it will notify owners, and franchised dealers will inspect and, as necessary, repair the connection between the shift cable and shift lever, free of charge.
The manufacturer has not yet provided a notification schedule, according to NHTSA.
In the meantime, owners can contact Hyundai customer service at (800) 633-5151 and reference recall No. 123.
Chrysler Recalling 29,500 Fiats
In other recall news from Auburn Hills, Mich., Chrysler Group said on Wednesday it will recall an estimated 29,500 vehicle to replace their knee airbags.
“The action follows routine testing that suggests the supplemental restraint — designed to protect a driver’s knees — may not deploy in the proper position if the driver is not wearing a seatbelt,” the automaker said. “Chrysler Group recommends that all vehicle occupants wear seatbelts.”
The company emphasized that it is unaware of any related injuries. The recall involves an estimated 25,500 model-year 2014 and 2015 Fiat 500L models in the U.S., and 4,000 in Canada.
OEM officials said affected owners will be advised when they may schedule service, which will be performed at no cost to them.
In the interim, owners are advised to wear their seatbelts. They also may call Chrysler’s customer information center at (800) 853-1403.
Chrysler Group announced Friday a recall of approximately 895,000 SUVs due to potentially improper wiring to vanity mirrors and/or headliners.
The vehicles affected, certain 2011-2014 Jeep Grand Cherokees and Dodge Durangos that have previously had their vanity mirror and/or headliners serviced, may have been reassembled unsafely by the dealer and may be prone to short-circuiting and igniting. According to the manufacturer, three injuries related to this issue have been reported.
Chrysler is currently offering to install a spacer containing a wire guide feature that will properly route the electrical lines directing power through the headliners and to the vanity mirrors. According to the manufacturer, the vehicles that have not previously received service on this area of the vehicle are not prone to short-circuiting or fire, but are also covered under the recall range.
All affected vehicles in the recall range will be repaired at no cost to the customers, who will be contacted by Chrysler and informed when service will be available.
Of the estimated 895,000 vehicles, approximately 651,000 are located in the US, 45,700 in Canada and 23,000 in Mexico; 175,000 are outside of the NAFTA region.
