A recent study says that a surge in new car models, increasingly complex technology and heightened regulatory scrutiny have led to more automobile recalls, particularly for safety concerns. According to the findings of the study, more than 10 million vehicles were recalled last year because of safety-related issues, the most since 2009. The study of automaker and National Highway Traffic Safety Administration (NHTSA) recall data was done by Stout Risius Ross Inc., a financial advisory firm.
Ford Motor Co. and General Motors Co. together are introducing 30 new or revamped models in North America this year. As the number increases, the chance for increased quality issues also rises. Automakers on average order recalls on 54 percent of their models in the vehicle’s first year of production, according to the study. When you consider that recalls generally deal with a safety issue, that number is most significant.
Hyundai Motor Co. ranked highest with 67 percent affected by recalls in the first year; Toyota Motor Corp. was lowest at 42 percent, the study shows. NHTSA’s definition of safety-related vehicle components includes air bags, child seat parts, seat belts, brakes, steering, visibility, acceleration and wheels.
Source: Claims Journal
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