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April 4, 2016
www.usedcarnews.com
Industry Faces Challenge in Recall Response
GOING ROGUE: Nissan North America Inc. is recalling 46,671 model year 2014 Nissan Rogue vehicles because improper nickel-plating of components within the fuel pump may result in it failing. By Ted Craig
newer cars is 80 percent. It falls to 50 percent for cars that are more than three years old. “It might take some new solutions to get these older cars to where the newer ones are,� he said. The manufacturers have moved beyond just sending out letters in recent years. They have turned to everything from call centers to social media in some of the biggest recalls. SSR studied the wording of recall letters to see which proved most effective. They found more dramatic words
have less of an impact. “Accident/crash� ranked the highest as a call to action, while “fire/ explosion� ranked the lowest. Steinkamp said some used-car drivers even view these words as scare tactics designed to get them into dealerships. The biggest issue for drivers is inconvenience. They don’t want to lose use of their vehicle. Steinkamp said manufacturers might need to consider some sort of incentive for these drivers to bring in their vehicles, such as a gift card.
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The National Highway Traffic Safety Administration wants higher completion rates for recalls even as the number of units covered grows and despite the fact that used-car owners often ignore notices. There were 51 million vehicles recalled in 2015, surpassing the record for recalls set in 2014. The Takata airbag issue created a sizeable portion of these recalls, but there were plenty of other large events, such as Toyota’s recalls of 1.8 million units for problems
with windows. NHTSA also assessed $500 million in fines. These trends will continue this year, said Neil Steinkamp, managing director at Stout Risius Ross Inc. The FAST Act, passed last year, expands the period for which a manufacturer is required to make recall repairs to 15 years from 10. That means even older used cars will be covered in recalls. But the older a car is, the harder it is to reach the drivers, Steinkamp said. The average recall repair rate for
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