Page 13 - MIADA-Q2 2022

FEA TURE

Broken Vehicle Recall System Puts

Unsuspecting Dealers at Risk

By FI Staff

Between 20% to 25% of all vehicles on the “Dealers simply cannot know whether or at 23.4%; Delaware had the lowest at
road have one or more open safety recall not vehicles have an open recall using their 5.6%;
at any given time. However, government current methods,” Paul said. “The best • Currently, only 44% of dealerships
databases have an approximate 30% way to tackle this challenge is through an have a written safety recall
error rate, leading many auto dealers to automated system that verifies VINs using management policy;
unknowingly purchase and sell vehicles advanced technologies and with multiple • 100% of dealers surveyed said staying
with open safety recalls. The findings sources, on a nightly basis with minimal in compliance was critical. Yet none of
were part of “Safety Recalls: State of the initial effort by dealers.” the dealers surveyed said they check
Retail Industry,” a report released today by their own inventory for safety recalls
AutoAp, Inc., the industry’s leading auto “Safety Recalls: State of the every day;
safety recall software company. To obtain a Retail Industry” details • Government fleet vehicles have the
copy of the report, visit www.autoap.com/ highest open recall rate at nearly 36%. n
industryreport threats, opportunities for
how automotive retailers
There have been more than 5,000 vehicle handle vehicle safety recall
safety recalls since 2014, affecting millions
of vehicles. Because many vehicles are management.
covered by multiple recalls, the average
vehicle on the road today has 1.2 recalls. Paul urged dealers to take a handful of
Worse, often, there are lags between simple steps to get started.
manufacturers assigning recalls onto • Write a policy for the dealership or
vehicles and either the manufacturer or dealership group that spells out how
government publishing them for dealers the organization will handle open recall
to learn if their inventory is affected. needs – and have everyone sign it;
In addition, human error often leads to • Appoint one team member within
misclassification of recalls, incorrect the organization to oversee
vehicle makes or incorrect model recall operations – with both the
years through the government and responsibility and authority in
manufacturers. this critical area;
• Implement an automated
“Many automotive retailers do not realize process to verify, monitor
how badly the safety recall ecosystem is and report recalls;
broken,” said Mark Paul, CEO of AutoAp. • Use daily reporting to
“This impacts dealerships of all sizes, identify open recalls
brands and locations through liability and and track repair status.
compliance issues, as dealers often buy and
sell vehicles with open safety recalls and do Dealers who follow
not know it – through no fault of their own.” these simple steps
have significantly
Many auto dealers continue to use manual lower open recall
processes to track open safety recalls, rates among their
or worse, ignore the problem altogether inventory. Dealerships
due to the time-consuming, error-prone who develop a fully
and delayed data. In addition to liability automated system
issues, dealers are often missing out on a reduce their open recall
valuable revenue stream as recall repairs rates by nearly 90%.
are covered by manufacturer warranty In other findings:
reimbursements. • Hawaii had the highest open rate

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