Trend Analysis of Car Recalls: Evidence from the US Market

Influenced by Toyota’s recent automobile recalls 2009-2010, and highlighting the importance of recalls research, this study conducts a car recalls trend analysis for the US market that is a first of its kind. The research uses secondary data from recall websites maintained by public and private organizations. The study shows recalls are a common event with the majority of recalls initiated by only a few carmakers. Though carmakers use many eye catching and popular quality and customer care slogans and programs, many popular car makers still face valid customer complaints and consequently face many unwanted recalls. Results of automobile recall trends analysis will be beneficial for car makers, government authorities who deal with recalls, insurance companies, and researchers