The automotive industry has a recall problem.
By the numbers: 7.32 million vehicles were recalled in Q2 2025, a sharp rise from Q1’s 3.46 million, according to a BizzyCar analysis of federal data.
And so far in Q3, recalls continue to explode.
In September alone, Ford has recalled 1.5 million vehicles, Toyota has recalled over 650,000 units, and Hyundai similarly is on the hook for 600,000 vehicles spanning two separate recalls.
The reasons: Recall reporting likely has become more precise over the years as penalties for automakers have increased.
Many OEMs also have hair-trigger reactions to potential defects to save face and limit liability.
Plus, many recalls happen because manufacturers don’t have a clear line of sight to their suppliers, or how they handle quality.
But new AI-driven tech is hoping to change that.
Ford, for example, has rolled out two in-house AI systems, called AiTriz and MAIVS, to detect defects at the factory in real time, before they turn into costly warranty claims.
However, franchised car dealers are responsible for the overall labor and service experience of fixing recalls.
And the more vehicles recalled, the more logistical challenges dealers face. Are the necessary parts available? Do I have enough capacity in my service bays?
Worth noting: If you're new to the car business, recall work is performed for customers by dealers at no charge. The manufacturer then reimburses the dealer at a fixed rate for the associated costs of resolving the recall.
But between the lines: Recalls are prime occasions to help improve the dealership's bottom line, re-engage their customers, and improve retention.
"So, I work with a lot of stores and almost every brand of a store that I work with hates recalls," Ed Roberts, COO of Bozard Ford Lincoln said on a recent episode of the CDG Podcast.
Ed Roberts
“I love recalls because recalls are an opportunity to reintroduce ourselves to our customers. And nationally, less than 31 % of our customers end up servicing with the brand dealer after their warranty period. Less than 31%. And so that means 70% is going somewhere else," he explained. "Well, that's an opportunity to bring that customer back and introduce them to your store. And so, I love it for that reason alone."
The details: To help manage the workflow, Bozard leverages many tools and lists including manufacturer provided VINs. But Roberts said AI-driven platforms like BizzyCar "do a great job of scrubbing through that data and giving us cleaner lists."
BizzyCar also uses AI to identify eligible VINs, automate recall outreach, and allow customers to schedule their appointment via text.
“Dealerships face growing pressure to turn service visits into lasting customer relationships, said Ryan Maher, Founder and CEO of BizzyCar. "At many of our dealerships, nearly a third of the appointments we complete are from customers who hadn’t been to the store in more than two years."
Ryan Maher
Since its launch in 2020 by Maher, a former franchised car dealer, BizzyCar has raised a total of $50 million in Series B funding, including a $20 million round announced today. The round was led by existing investor Dealer Tire, with participation from new investor FM Capital.
“Recalls have long been one of the most painful, outdated processes in automotive,” said Chase Fraser, Founding Partner at FM Capital. “BizzyCar is reinventing that experience, streamlining it in a way that benefits dealers, OEMs, and customers. We’re excited to back a team that is reshaping such a critical part of the ownership journey.”
Chase Fraser
The new funding will support BizzyCar's AI-led product development and expansion of the platform, including its mobile service capabilities.
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That's the other piece of this puzzle.
Zooming out: Mobile service and recall resolution can be the perfect operational marriage.
By offering mobile service for recall repairs, dealerships eliminate major customer pain points like: time off work, travel to the dealership, long wait times, etc).
But with mobile service, technicians obviously bring the repair to the customer at their home, office, or anywhere convenient. This convenience translates into higher recall completion rates and improved customer satisfaction.
Bozard now completes around 2,000 mobile repairs and 800 - 1,200 pick-up/delivery services each month, which make up roughly 30% of their monthly repair orders.
The purple cow: Dealers are tapping into mobile service for fleets of vehicles owned by government agencies or small businesses.
“Once you're in,” Roberts told CDG News, “you’re doing 8–10 cars in a visit. It’s a completely different game.”
The elephant in the room: While Ford has scaled to over 3,600 mobile vehicles with heavy OEM subsidies, other brands are left to figure it out themselves.
And without manufacturer support, launching mobile service can feel daunting.
But St. Charles Hyundai successfully launched its mobile service program independently to help handle the Hyundai 993 campaign (which affected nearly 4 million vehicles).
The dealership upfitted a van and dedicated a Hyundai Tucson to mobile operations. Now, the store resolves three to five recalls per day.
Corporate representatives from Hyundai Motor America even visited the store to observe the mobile service process in action, recognizing its potential as a benchmark for dealers nationwide.
At the end of the day, fixed operations (the dealership service center that processes recall work) is the engine responsible for around 50% of a dealership’s gross profit (in many cases more). And as new car margins shrink, the pressure to innovate service work is intensifying.
Editor's Note: This article features commentary from a BizzyCar employee. BizzyCar is an advertising partner of CDG News and has advertising content within this article. The editorial content and interview were conducted independently and were not sponsored or influenced by BizzyCar's advertising relationship with CDG News.
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