JULY 2022 NEWSLETTER
Global Supply Chain and Parts Availability Problems Place Driver Safety at Risk and Frustrate Dealers
One might argue that there's nothing more frustrating than ordering your favorite dish from the menu, then finding out from the server that they're fresh out of the ingredients. Post pandemic, the scenario is playing out across the global supply chain and extends to everything from consumer electronics to baby formula. The automotive industry, already parched from a chip shortage that has brought vehicle manufacturing to its knees, is wondering whether parts availability will hinder the ability to service the massive number of older models on the road. Owners of vehicles affected by a dangerous recall are also among the victims.
Earlier this month, GM announced a recall of approximately 682,000 Chevrolet Equinox and GMC Terrain SUVs due to possible windshield wiper failure. If announcing a recall wasn't enough, the OEM was forced to notify owners that parts weren't available to remedy the problem. Further adding to the matter, GM then had to admit that they were unsure as to when the parts might be available. The incidence has left many vehicle owners frustrated, though has not been an immediate threat to driver safety, as no accidents have been reported. However, the rainy season is just around the corner and the pressure to resolve the matter will be matched by owner anxiety.
GMC issued this statement: “We have announced the recall, but we are not executing it because we need to have our suppliers build the parts to begin repairs. We apologize for any inconvenience. We understand concerns and frustration.”

Dealers are also placed in an uncomfortable position by having to inform owners that a recall remedy is not yet in place. The problem is more than an inconvenience. For states with safety inspections as part of the vehicle registration process, inoperable wipers will result in a failed inspection, preventing the owner from being able to drive the vehicle legally on the road. Setting aside the safety risk, drivers could also face citations should they ignore those registration laws and get pulled over by law enforcement. As you can imagine, the parts problem snowballs from an inconvenience to safety risk and consumers who could lose faith in the brand. While it's not GM's fault, ultimately, they own the problem. Read more on The Hill website.
The Wheels Go Round and Round - Growing Safety Questions Surround EVs

The media's love affair with the electric vehicle isn't over, but it's taken a hit after number Tesla recalls, a collection of battery fires, the Ford F-150 Lightning recall over its tire pressure monitoring system, wheels falling off of Toyota bZ4X models and a host of other recalls. The realization that not all recalls are going to be addressed with over-the-air software updates has sobering consequences for those who predicted that the next generation of vehicles would avoid trips to the dealership. In fact, the exact opposite is true, as OEMs have increased their warranty budgets by 4% annually at a time when production is at historic lows. Batteries, software and electronic components add a significant amount to the cost of production, even without a chip shortage. No one can argue that vehicles aren't safer as a result of driver-assisted technologies, though it's clear we're not all in agreement with abandoning the internal combustion engine. For the moment, the question as to whether EVs are immune to recalls appears to has been answered. Read more on the Washington Post website.
Recall Masters Appoints Jim Yanco Executive VP of Operations
 
Recall Masters recently announced the promotion of Jim Yanco to Executive VP of Operations. While Yanco will continue to oversee all production and operations, this appointment emphasizes a more strategic role in the company's continued innovation in data, technology and communications. Jim brings more than 40 years of automotive experience both as a General Manager of dealerships and founder of companies that serve the industry. His passion for the automotive space is a driving factor in his accomplishments. This includes executive level management for four prominent automotive dealer groups. Yanco has been approved as the “Dealer of Record” for BMW, Toyota, Honda, Nissan, General Motors and Chrysler. He has won multiple awards for Sales Efficiency and Customer Satisfaction. Jim served on the committee that developed Toyota’s coveted President’s Excellence Award. Yanco then invested his wealth of experience into being the founder and President of MyCustomerData, where he pioneered many automotive retail marketing solutions.
Recall Quandary: Who is to Blame?
A Blog Post by Sean Reyes, Chief Marketing Officer for Recall Masters 
 
Automotive News recently reported that a Ford dealership in Texas, and Ford Motor Co., are facing a lawsuit by a woman who incurred severe injuries during a collision when the passenger-side airbag deployed and expelled shrapnel resulting in the loss of her left eye. She is now suing the OEM and dealership.
She has been advised by legal counsel that it is Ford’s responsibility to put safe vehicles on the road and, believe it or not, the vehicle was recently in the dealership to get the Takata airbag (an almost 10-year-old recall) repaired. However, they only replaced the driver’s side airbag, not the passenger’s side. That mistake proved costly to the passenger and, ultimately, weakens the legal defense for the dealership.
 
There have been many injuries and deaths (19 deaths and four hundred injuries) involving Takata airbags in the last decade and this is the largest recall in automotive history.
Takata itself filed for bankruptcy and was acquired, but the lingering impact persists. Manufacturers still need airbags to build and distribute vehicles to dealerships. A different supplier may appear and offer more reliable airbags but, for now, manufacturers need to continue production and dealers still need vehicles to sell...Read the blog post in its entirety on the Recall Masters website.
In Recent Recall Campaign News
Hyundai Issues Second Recall of Ioniq Hybrids Over Risk of Fire
 
Hyundai is recalling 10,575 units of the 2017 and 2018 Ioniq hybrid and plug-in over a potential fire risk. In 2018, the OEM previously recalled these models but reports that the recall may not have been properly repaired. Connections in the main relay can come loose, causing increased electrical resistance and components to heat up. If they get hot enough, a fire can ensue. Owners might see a HEV warning light or experience starting issues. Hyundai first learned of the problem in March 2018, but persists after years of diagnosing the defective parts and ineffective remedies. In June 2021, Hyundai learned of a 2017 Ioniq that caught fire after having completed the recall repair. The company believes that the proper remedy is now in place and urges owners to visit their local Hyundai dealership. Read more about this recall campaign on the MotorSafety.org website.

Stellantis Recalls Jeep, Ram Vehicles Over Fuel Pump Failure, Crash Risk
 
Stellantis recalled 138,645 trucks and SUVs and powered by the 3.0-liter V-6 Ecodiesel engine. The recall stems from a defective fuel pump which can restrict the flow of fuel, leading to a loss of power while the vehicle is in motion. 2014-2020 Jeep Grand Cherokee SUVs and 2014-2019 RAM 1500 pickup trucks are named in the recall. Drivers may notice a leak from the fuel tank area or hear excessive noise, possibly seeing check engine light or Electronic Throttle Control indicator may illuminate in the gauge cluster. To date, the OEM is not aware of any crashes or injuries as a result of the defect. The recall is another blemish on these diesel power plants, which introduced fuel efficiency for the brand's SUV and truck lines. Jeep and Ram will inspect and replace the fuel pump and affected components at no cost to owners. Read more about this recall campaign on the MotorSafety.org website.
For more recall campaign news, visit our consumer site MotorSafety.org
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Recall Masters, Inc.
23131 Verdugo Dr., Laguna Hills, CA 92653
888.651.4480 | sales@recallmasters.com
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