Change Still Requires Familiar Faces: Consumers Still Prefer to Buy from and Service at a Local Dealership |
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A recent recall at truck maker Rivian affects approximately 13,000 vehicles, virtually every vehicle the manufacturer has produced. While over-the-air (OTA) updates deliver a promising outlook on recall compliance, this particular recall requires technician intervention in order to tighten a loose fastener that could potentially affect a drivers’ ability to steer. Tesla has faced a number of recalls across its fleet, though software updates and mobile technician fleet has allowed the manufacturer to address owner scrutiny over its ability to repair recalls. Still, when factoring in the small number of vehicles produced, service capacity and proximity to local service appears to be a huge challenge on the horizon.
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"There's a clear correlation between a consumer attending to the recall and the distance that the consumer has to travel to receive that assistance," explains Sean Reyes, Chief Marketing Officer for Recall Masters, the auto industry's leader in recall solutions. "While a significant number of EV recalls involve software updates, many others will still require the assistance of a technician. It appears that service departments at franchised dealers will have plenty of warranty and CP work for decades to come. Just ask Tesla owners, who can expect to wait about 4 weeks for a service appointment. Consumers value local service." |
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After results from a recent consumer survey, dealer optimism also holds true on the vehicle sales side of the business. The EVForward team, part of advisory firm Escalent, recently surveyed 1,289 consumers on the behaviors and opinions of the next generation of EV buyers. The 2022 Dealer DeepDive report surveyed revealed that 74% of respondents would prefer to buy an EV at a dealership, rather than from an auto manufacturer or third party. Participants who own an EV, EV intenders and younger buyers are more likely to prefer purchasing directly from an automaker. However, a majority of each group still prefers buying from a dealership. While the EV market is still in its infancy, the automotive industry is changing and the role of dealerships is fueling heated debate over who is going to attend to the service and sales needs of the local shoppers and owners. Read more about the EVForward survey on the Automotive News website.
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Toyota CEO Offers Realistic Perspective on EV Adoption and Manufacturing
Toyota Motor Corp. CEO Akio Toyoda isn't feeding into the hype about EV adoption by 2030. While considered a laggard by many monitoring the EV market, the Japanese automaker remains focused on the immediate chip shortage. Late last month, Toyota told investors that it would fall 100,000 vehicles short of its 900,000 global goal due to the ongoing semiconductor shortage. As for US targets that call for 50% electrification on all vehicles, Toyoda tempers expectations by suggesting that it will take longer. In related news, Toyota restarted production of its first electric vehicle, the bZ4X, after more than three months. The safety concern revolved around a risk that the vehicle's wheels could come loose. Sharp turns and sudden braking could cause a hub bold to loosen, resulting in the loss of a wheel. Toyota also recently identified and fixed a potential problem with improperly installed airbags in the car. Read more on the US News & World Report website.
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Why are US Traffic Deaths Spiking in the Years We Drove Less?
For the period between April 2022 and June 2022, the US tallied nearly a third of the total number of traffic fatalities in all of 2011. What is going on? It is widely perceived that today's vehicles are safer and that, given a pandemic that forced many of us to stay home, we have fewer vehicles on the road. Those estimates also painted a false sense of security. True - most drivers reduced their driving during health-related shutdowns. However, approximately 4% of the population drove more. Those drivers were largely younger and disproportionately male — a statistically riskier driver group than the average population. According to NHTSA, an estimated 10,590 people died on US roads and highways. Some transportation experts also point to an increase of older vehicles due to the chip shortage. Those older vehicles are not equipped with the same safety features and may have lapsed in proper servicing of brakes, tires and more. Read more on the Axios website.
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One Man’s Trash is Another Dealer’s Treasure
A Blog Post by Sean Reyes, Chief Marketing Officer for Recall Masters
Not too long ago, in a parallel universe, we were all familiar with, vehicles lived lives then passed on at about the 100,000-mile mark. Whether they passed privately or through a dealership, at some point, they pretty much moved on to an auction, a wholesaler, a parts recycling center, or, potentially, a Buy-Here-Pay-Here store. Used vehicle values plummet at the 100,000-mile mark for two reasons. First, franchise dealers see them unfit for retail, and second, lenders rarely finance them.
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When a consumer comes in wanting to buy a new (or new to them) vehicle and has a trade with more than 100,000 miles, the usual dealership values the trade by how much a wholesaler would pay for it. Many dealerships have wholesalers they deal with frequently, so the sales (or used car) manager simply makes a phone call, gets a buy-bid, then presents the trade-in value to the customer. Those vehicles then either go to an auction, get sold to a used car lot, or a Buy-Here-Pay-Here for cheap. In today’s seller’s market, however, low inventory levels have caused many franchise dealers to rethink their previous “set-in-stone” rules. |
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An article in Automotive News shares how some dealers no longer shy away from these 100,000-mile cars; but, rather, embrace them. Because of consumer demand, dealers are making a rather substantial profit. It appears that 200,000 miles is the new 100,000 miles, according to an executive editor at Autotrader. Consumers aren’t running for the hills, but quite the opposite – they are embracing it....Read the blog post in its entirety on the Recall Masters website.
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In Recent Recall Campaign News |
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Tesla Recalls Cars Over Faulty Window, Injury Risk
Nearly 1.1 million 2017 to 2022 Tesla Model 3 sedans and some 2020 and 2021 Model Y SUVs are being recalled in the US due to a window software defect. The National Highway Traffic Safety Administration (NHTSA) is warning owners that windows can pinch a person's fingers when being rolled up. In documents submitted to the regulatory agency, Tesla explained that the automatic window reversal system many not react properly after detecting an obstruction. While Tesla was not aware of any warranty claims or injuries as of mid-September, NHTSA says the software defect is a violation of federal safety standards for power windows. An online software update will fix the problem, according to Tesla. The EV manufacturer discovered the defect during production testing in August. Tesla owners will be notified of the defect starting November 15. Read more about this recall campaign on the MotorSafety.org website.
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Ford Recalls Vehicles with Flickering Parking Lights
Ford has recalled certain 2022 - 2023 Ford Bronco Sport and 2022 F-150 vehicles due to a defect in the parking lights that could cause them to flicker. Flickering parking lights can interfere with visibility and increase the risk of a crash. The operating frequency of the LED driver unit is 200 Hz. At 200 Hz, the lamp is prone to flickering due to a related capacitor. The parking light may flash in one of the following three conditions. Scenario 1: When the customer manually selects the Mode Light On. Scenario 2: When the customer manually selects the “Headlights On” mode. Scenario 3: When the customer drives in auto headlight mode and the surrounding area becomes dark enough to turn on the “night mode”. Dealers will replace or reprogram the LED driver model for free in order to resolve the problem. Owners will be notified of the defect starting October 31. Read more about this recall campaign on the MotorSafety.org website.
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More Recall Campaign News
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