Based in Indianapolis with an international reach, Stericycle Expert Solutions’ quarterly Recall Index tracks government-mandated repair initiatives for faulty vehicle components.
Wayne Mitchell, director of the company’s automotive division, recently responded to questions posed by Aftermarket Business World about the pace of ongoing industry recalls:
Q: What is the overall status of OEM and motorist recall response rates on a global scale?
A: The laws and regulations that govern automotive recalls differ across various countries, but our solutions are the same. We have found that multichannel outreach, such as emails, outbound calls, text messages and mailers can significantly improve recall completion rates.
Q: What trends are you currently seeing?
A: In Europe, airbags have been the top cause for passenger vehicle recalls in each quarter (of 2017), accounting for 28.6 percent of the passenger vehicle recalls and 17.2 percent of all motor vehicle recalls.
In the U.S., although airbags were the top cause for recalled units, only one quarter saw airbags as the top cause of recalls. In total, 11.8 percent of the NHTSA (National Highway Transportation Safety Administration) recalls in 2017 were due to airbags.
Q: What, then, is the overall annual most-recalled category in the U.S.?
A: Airbags were the highest NHTSA recall category based on units in 2017.
Q: Are these recalls related to Takata or are other airbag manufacturers involved as well?
A: While we don’t discuss individual manufacturers, it is important to note that there were multiple issues associated with airbag recalls in Q4 – not just inflators. For example, there were airbag recalls caused by a problem with the sensor.
Q: What is the scope of the American airbag recalls?
A: The total number of recalled airbag units in 2017 was 16,969,981:
- Q1 2017: 9,757,403 units
- Q2 2017: 1,371,344 units
- Q3 2017: 4,390,195 units
- Q4 2017: 1,451,039 units
Q: What is your analysis of the product categories that have experienced high recall numbers, current and in the past?
A: In 2017, the top cause was airbags, with 16.9 million units (almost as much as all NHTSA units recalled in 2012), 38.4 percent of the total units subject to recall. Airbags were the third-highest in 2012, with 1.86 million units, 10.2 percent of the total.
Airbags were the highest category in five of the last eight and three of the last four quarters. Q3 and Q4 2016 saw seat belts as the top cause for recalled units. However, in 2017, seat belts were not a major recall contributor, falling to the eighth-highest cause for recalled units. In second place in 2017 was equipment, which was the cause for 11.5 percent of the 2017 recalled units. However, there were three times as many recalled units due to airbags than due to equipment.
If we go back to 2012, the top non-airbag causes for recalled units were visibility and exterior lighting.
In looking at number of recalls, equipment such as screws, panels and other small parts is typically the top cause.
Q: There have been reports of ongoing issues within the visibility category; how prevalent are these problems?
A: Typically visibility recalls have to do with issues relating to windows or defrosting systems. Visibility was the top reason based on units in 2012, with 3.4 million units, 18.4 percent of the total. Visibility only affected 131,391 units in 2017, just 0.3 percent of the total.
Q: Was it one manufacturer or several?
A: Stericycle does not disclose the name of manufacturers involved in product recalls.
Q: For older vehicles, what are some of the more common recall categories?
A: Of course, airbags are a common issue on both older and newer vehicles, but some other causes of recalls in vehicles 10-plus-years-old vehicles have included powertrain and engine cooling issues.
Q: Can some of these past recall repairs be conducted by independent repair shops, or are these still the domain of dealerships?
A: Only OEM dealerships are authorized to perform recall repairs, including the part replacements. Aftermarket repair facilities and parts stores are not authorized to repair the recall.
Q: Can parts stores typically provide the components allowing DIYers to conduct the necessary repairs on their own?
A: In order to ensure the repair is completed and done properly, they should be conducted by the dealership, and OEMs only authorize their own dealers to perform this service. It is important to remember that the repair, including labor, is free of charge to the vehicle owner, and loaner vehicles or even tows are often made available at no cost as well.
Q: Do you have statistics regarding the amount of recalls that are not brought in for repairs by motorists?
A: The industry remedy rate for vehicle recalls after six quarters hovers around 60 percent to 65 percent.
Q: How do you compile your information on recalls?
A: The Stericycle Expert Solutions Recall Indexgathers and tracks cumulative data from the four primary federal agencies that oversee recalls in the United States: The Consumer Product Safety Commission (CPSC), the Food and Drug Administration (FDA), the Food Safety and Inspection Service (FSIS) of the United States Department of Agriculture (USDA), and the National Highway Traffic Safety Administration (NHTSA).
Q: What is the history of your company? What services do you offer?
A: Stericycle Expert Solutions is the industry leader in managing automotive, consumer product, pharmaceutical, medical device, juvenile product, and food and beverage recalls. The company serves as an on-call extension of each customer’s team with a staff standing ready to guide companies through the recall, retrieval, return and audit processes.
Expert Solutions streamlines the entire product recall process and manages notification and response, processing and tracking, and compliance and reporting for leading global companies. This comprehensive suite of highly focused services provides global and local expertise before, during and after a recall threat – providing customers with the right resources in the right locations to manage any recall challenges with speed and accuracy.
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