Vehicle Recalls

Hilary Bates – Warwick Business SchoolMike Lewis – Bath Business School

Matthias Holweg and Nick Oliver – Judge Management Institute - Cambridge

Data Sources

• Vehicle Inspectorate UK

• National Highway and Transport Safety Authority

4351 46

55

68

54

85

73

103

123

137

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

2,000,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Num

ber o

f Veh

icle

s

0

25

50

75

100

125

150

Num

ber o

f Inc

iden

ts

Total Number of Vehicles Recalled Total Number of Recall Incidents

Ranking

Manufacturer

Recall Volumes as % of Total

Registrations

1 FERRARI 150%

2 BMW-Mini 110%

3 LAND ROVER 103%

4 JEEP 95%

5 ASTON MARTIN 90%

6 VAUXHALL 79%

7 LOTUS 78%

8 CHRYSLER 74%

9 VOLKSWAGEN 69%

10 LANCIA 66%

11 MASERATI 63%

12 VOLVO 53%

13 MITSUBISHI 52%

14 FORD 51%

15 FIAT 51%

16 SAAB 50%

17 CITROEN 49%

18 BENTLEY 39%

19 DAIHATSU 39%

20 AUDI 35%

Ranking

Manufacturer

Recall Volume as % of Total Registratio

ns

21 PORSCHE 34%

22 SEAT 33%

23 MAZDA 32%

24 PEUGEOT 28%

25 SKODA 28%

26 MERCEDES 25%

27 MG-ROVER 25%

28 NISSAN 24%

29 RENAULT 23%

30 HYUNDAI 23%

31 TOYOTA 21%

32 ALFA ROMEO 21%

33 DAEWOO 20%

34 HONDA 20%

35 JAGUAR 19%

36 SUZUKI 12%

37 PROTON 10%

38 KIA 5%

39 ISUZU 0%

40 SUBARU 0%

Average over sample 47%

Models offered 1992-2002

403020100

Index:

recall

volu

me d

iv b

y r

egis

trations

1.6

1.4

1.2

1.0

.8

.6

.4

.2

0.0

-.2

VOLVO

VOLKSWAG

VAUXHALL

TOYOTA

SUZUKI

SUBARU

SKODASEAT

SAAB

RENAULT

PROTON

PORSCHE

NISSAN

MAZDA

MASERATI

LOTUS

LAND ROV

LANCIA

KIA

JEEP

JAGUAR

ISUZU

HONDA

FORD

FERRARI

DAIHATSU

CITROEN

CHRYSLER

BMW-MINI

AUDI

ASTON MA

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

manufacturing design assembly

Total number of vehic les recalled - change in cause

1998 2001

21.0%

32.9%

25.0%

12.0%

8.2%

0.5% 0.4%0%

10%

20%

30%

40%

Build Year 1 Year 2 Years 3 Years 4 Years 5 Years 5 Years+

% Recall Volume in Years after Build Year

Figure 4: Delay of Recall Reports in Relation to Vehicle Build Date

Recalls Increasing

Root Cause?

Vehicle Design Process Design

Late Changes NPD pressure Suppliers Vehicle Build Plant Issues

Recovery and Role of Dealers

Impact on the Brand?