Automotive recalls show no signs of slowing

Automotive recalls may have hit historical peaks from 2014-2016, but since then, not a year has passed where less than 30 million vehicles have been recalled. And so far, 2024 is on track to exceed that threshold again.

By the numbers: According to the BizzyCar Q3 Recall Report, 21 million vehicles have been recalled year-to-date, with 6.5 million vehicles recalled in Q3 2024 alone. 

Brand breakdown: Tesla came in first with over 1.8 million vehicles recalled in Q3, but all issues were taken care of by leveraging over-the-air (OTA) updates. Unlike physical or “traditional” recalls, OTA updates allow automakers to send software fixes and upgrades straight to vehicles over a wireless connection.

• Traditional manufacturers such as Chrysler/Stellantis, BMW, and General Motors issued more recalls than Ford in Q3 – a reprieve for the automaker which had the highest number of vehicles affected in Q2.

• Honda, Nissan, and Hyundai showed the most improvement in recall performance year-over-year.

• Toyota has had some rare misses this year, like leftover production debris that forced over 100,000 engine replacements.

State of play: With stricter reporting standards and the fear of bad optics or legal trouble, many OEMs are pulling the trigger on recalls faster than before—even at the slightest hint of an issue. And with the National Highway Traffic Safety Administration (NHTSA) proposing tougher vehicle design rules, automakers either have to pivot quickly or face even more recalls.

But, arguably the biggest reason recalls are rising is automakers are facing new challenges with software-defined vehicles. 

• In fact, 50% of recalls were for electrical systems as cars continue to be more like “computers on wheels” than mechanical products.

• Software-defined vehicles can have up to 150 million lines of code and are more prone to glitches and security vulnerabilities.

Like Tesla, other automakers are using OTA updates more and more. Over 34% of vehicles recalled year-to-date in 2024 can be fixed with OTA updates, up from 21% in 2023.

What they’re saying: "While OTA updates offer a step forward for convenience, they fall short in creating a comprehensive service experience. Recalls present a critical chance for dealerships to engage directly with customers through options like mobile service or pick-up/drop-off, offering personalized care that OTAs can’t match,” said Ryan Maher, CEO of BizzyCar. “Even as OTA updates become more common, there will always be essential services that require in-person expertise. Dealerships that focus on delivering a superior customer experience now will be the ones that build lasting customer loyalty."

Big picture: As automakers face increasing challenges with building more complex vehicles, the standard recall process is falling short. A recent investigation revealed that millions of recalled vehicles remain on the road unfixed, often due to gaps in tracking, communication, and convenience. In a sign of just how urgent the problem has become, recall management company BizzyCar recently secured a $15 million investment led by Dealer Tire to expand the use of AI and automation in resolving recalls.  

Bottom line: OTA updates might be gaining traction, but they’re only part of the solution. With the majority of recalls still requiring in-dealership repairs, the pressure’s on to rethink how these issues get handled—because software patches alone won’t keep up.

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