Mandated Safety Recalls in the U.S. Automobile Industry – 20 Years Experience

In an earlier study, an attempt was made to assess the macro effect of mandated auto recall on the U.S. auto industry. With the amount of information available at that time, recalls were numerically significant and increasing, the industry appeared to be relatively unaffected by their mandated imposition. Out of 248 campaigns, only 15 were 100 percent successful, and overall, less that two-thirds of all cars recalled were actually returned for inspection. Newer automobiles tended to have greater sm:cess rates as did vehicles from larger market share manufacturers. Further, there appeared to be no impact on sales in subsequent years nor did there appear to be any company particularly adversely impacted by recall practice (Page and Wilson 1976, 1979).