A report by Upstream suggests that most U.S. vehicle recalls could have been detected early on by using connected vehicle data and AI— easing the blow to the industry and consumers.
Zeroing in: The report—drawn from an analysis of more than 5,000 recall campaigns and over 30,000 consumer complaints from the U.S. National Highway Traffic Safety Administration (NHTSA)—also shows a huge increase in the early warning signs of potential recall issues.
The causes of 70% of all recalls since 2020 and almost 90% of those involving EVs could have been detected earlier using connected vehicle signals.
The share of recalls with detectable early warning signals has surged across vehicle types from 69% in 2020 to 75% so far in 2025.
Why it matters: Catching vehicle defects earlier with connected car data and AI could dramatically reduce the cost, scope, and safety risks of recalls—saving automakers millions, preventing harm to drivers, and speeding up regulatory response.
Between the lines: While EVs only represent 10% of new US vehicle registrations, recall figures for the heavily software-based cars highlight the missed opportunities when it comes to detecting vehicle quality issues early on.
EVs face more large-scale quality recall campaigns—with high-impact recalls accounting for up to 18% of EV campaigns, while massive recalls now comprise 8%.
Nearly half (49%) of EV-related recalls could have been identified early through diagnostic trouble code (DTC) monitoring alone, compared to 37% for all recalls.
According to Upstream, early recall detection can enable more precise population targeting, faster response, and reduced safety and financial impact—making it easier for automakers, dealers, and vehicle owners to manage the dynamics associated with the fixes.
What they’re saying: "The automotive industry is navigating a perfect storm of rising warranty costs, growing recall volumes, and increasing system complexity, particularly as EVs and SDVs become the new standard…The opportunity is clear: with the right machine learning foundation and modern data infrastructure, automakers can detect issues earlier, pinpoint root causes faster, and ultimately reduce recall scope while protecting budgets and customer satisfaction,” said Yoav Levy, CEO and Co-Founder of Upstream.
Bottom line: The auto industry is missing a major opportunity to cut recall costs and improve safety—given the potential for connected vehicle data and AI to detect most recalls early on, contends Upstream. As cars become more software-driven, that early detection capability could become a competitive and regulatory necessity.
A quick word from our partner
If you’re looking to expand your dealership’s wholesale inventory, you need to hear this.
Copart helps dealers find front-line ready vehicles from finance, fleet, and rental consignors. Whether you need a late model, clean title car, truck, or SUV, they’ve got you covered with their wholesale auction every Tuesday and Thursday at 11am CST.
Every wholesale vehicle gets a 65-point inspection, detailed photos and engine audio. AI-powered insights highlight any damage while sale lights give information at a glance. And Copart’s industry-leading arbitration policy lets you file a claim within 21 days or 300 miles.
Don’t wait, your next vehicle is just one-click away. Copart’s Wholesale Auction gives you transparency that drives profitability.
Go to copart.com/wholesale for more information.
OUTSMART THE CAR MARKET IN 5 MINUTES A WEEK
No-BS insights, built for car dealers. Free, fast, and trusted by 55,000+ car dealers.
