Insight

The auto industry’s growing recall problem—and how to fix it

January 2018
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Recalls to correct defects in electronic or electrical systems—including many comfort and safety features that today’s consumers demand—have grown a staggering 30% a year in recent years. The spate of auto recalls is taking a heavy financial toll on OEMs and suppliers.

At a glance

  • The frequency that suppliers are named in recall notices has doubled since 2013, and their share of total recall costs has tripled.
  • Despite the mounting expenses and bad press, some OEMs and their suppliers remain preoccupied with cost reductions and innovations rather than quality.
  • Companies would serve themselves well to move aggressively and reinforce advanced product quality planning now.

Meet the Authors

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Jason Reaves

Vice President, Los Angeles

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