Laguna Hills, CA, May 17, 2022 — In its sixth “State of Recalls” report, Recall Masters, the automotive industry’s leading provider of recall solutions, revealed that more than 10.5 million affected passenger vehicles and light trucks and vans were accounted for in recalls mandated by the National Highway Traffic Safety Administration (NHTSA) in calendar year 2022. Another estimated 73 “voluntary manufacturer notice” campaigns affected 4.36 million vehicles, with another 133 campaigns affecting an unknown number of vehicles.

To clarify, since these “voluntary campaigns” are not yet identified as formal NHTSA recalls, data points such as number of affected vehicles does not require public disclosure. While many vehicles have more than one defect present, the 2022 total of 14.9 million affected vehicle recalls adds to the growing recall crisis. Taking into account unrepaired vehicles from previous years, the tally translates to more than one in four vehicles on US roads with at least one open recall. With an estimated 290.2 million registered vehicles in the country, the threat to drivers and passengers remains high despite the overall decrease in reported defects.

To date, the State of Recalls is the only annual report to publish data about voluntary manufacturer notices. While many incorrectly assume these notices do not pose risk the same risk to drivers as formal NHTSA recall campaigns, data suggest otherwise. Deploying its risk-scoring methodology, Recall Masters identified 61 of the 206 voluntary recalls deemed “high risk” to consumer safety. Only 33 of these notices disclosed the number of vehicles affected, some 1.56 million vehicles. Many of these voluntary campaigns could end up as formal NHTSA recalls, however, with a gap in time between reporting a defect and the investigations that follow, vehicle owners are left vulnerable. Recall Masters tracks a vast number of these notices, but not all of them, as manufacturers are not required by law to disclose beyond NHTSA’s oversight. As vehicles add new technology, it’s become more difficult for NHTSA to keep up with the volume and complexity of investigations.

“Software and electronics are an integral part of today’s vehicles,” explains Scott Alan, President and CEO at Recall Masters, a California-based data and technology company that connects dealerships and OEMs with owners of vehicles affected by a dangerous recall. “This isn’t a new trend, even as we migrate to EVs and autonomous vehicles. However, it’s clear that technological systems are doing more than enhancing the driver and passenger experience, they’re integral to vehicle operation. Driver-assisted technologies have increased safety, however, software and electronics can also present a source of defects that can negatively impact safety. Take into account the many functions where software and electronics are now involved where they previously weren’t – from opening doors to reclining seats – all which could malfunction due to software or an electronics component. We can anticipate a massive growth in recalls with no relief in sight.”

For the automotive industry, 2022 posed some unique challenges, beginning with another year of limited manufacturing. The lack of new vehicles caused vehicle owners to hold onto their vehicles for a longer period of time, acquire a pre-owned vehicle or pay well beyond sticker price for a new vehicle. As a result, the average age of a vehicle in operation in the US rose to 20.2 years. Older vehicles are not only considered less safe than new vehicles, they are largely owned by individuals who are not the original owner and beyond the reach of OEM outreach for the purposes of repairing a recall. In a post-pandemic world without vehicles, dealerships realized exceptional revenue growth through servicing out-of-warranty older vehicles and more profitable Customer Pay (CP revenue). The brisk growth in fixed operations slowed repair times for consumers, causing the demand for technicians in order to keep pace.

“The technician of the future will turn to laptops and software rather that wrenches and screwdrivers as vehicles are more like computers than machines,” explains Sean Reyes, Chief Marketing Officer at Recall Masters. “When NHTSA was established and charge with safeguarding the American public from manufacturing defects, there was no thought given to the influence of technology in vehicle manufacturing. The complexity and volume of campaigns will increase as we restore manufacturing levels – we’re already seeing signs of that this year. Rather than point fingers and assign blame, our role is to identify the shortcomings and present solutions. This report is part of the process – complete transparency. Having access to data and technology are essential parts to meeting our industry’s commitment to vehicle and driver safety. We’re pleased to be making a difference.”

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Media Inquiries

Sean Reyes
Chief Marketing Officer
949.246.6023
sean@recallmasters.com

For the purposes of this document, the term “recall” includes NHTSA-mandated recalls and an unaudited list of TSBs, defects and any other voluntary manufacturer notices that are issued by the manufacturer as part of an effort to inform consumers, dealerships and other entities that may own the affected vehicle. The use of the word “recall” should not be interpreted as a formal notice of a recall, either from the manufacturer or NHTSA. This summary is based on the available data collected by Recall Masters and is not a thorough accounting of all affected vehicles for 2022. Data is not authenticated by an independent firm.