The auto manufacturing industry mentality about recalls has changed in the past few weeks. As General Motors Co.’s (NYSE: GM) recalls have reached almost 14 million (for cars sold in the United States), analysts believe the number will grow. The chances that the federal government will examine car accidents more carefully have increased, as has the potential for legal liability.
Better to recall than have a recall forced on them, the manufacturers may have decided.
Certainly, recalls have accelerated recently. Toyota Motor Corp. (NYSE: TM) has just recalled 466,000 cars (globally). Nissan recalled 104,000 Jukes. Ford Motor Co. (NYSE: F) recalled 1.4 million crossover type vehicles. And there have been a number of other, much smaller actions.
No matter how well cars and trucks are built, almost all are bound to have some defect. After all, these are products made of thousands and thousands of parts. Some of these defects are nuisances. Some are dangerous. It may take a series of accidents to prove which is the case from one defect to another.
As the industry’s anxiety about whether it makes good cars and light trucks grows, the number of recalls is likely to explode. What the total will be is anyone’s guess. However, it will be much higher than the present tally.
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