Hyundai Joins The Recall Parade

Hyundai has recalled 47,000 of its Sonata sedans to fix door lock problems. It does so in an environment in which American consumers are becoming more and more suspicious of the auto industry. Hyundai was the only large car company that had an increase in unit sales in the US last year. Its customer satisfaction ratings have risen and the firm did particularly well in the new Consumer Reports rankings.

The CFO of Honda (HMC) remarked recently that the Toyota recalls could make people reluctant to buy new cars. The Hyundai news is likely to support the concern that US auto shoppers may decide in ever-growing numbers that owning their old cars which they know work is better than purchasing a new car which may not. The new car may even have dangerous faults.

Recalls are a normal part of the car industry’s activity to keep customers safe. Vehicles with thousands of parts are likely to have quality issues from time-to-time. But, the Toyota recalls and later investigations have made each new recall by any auto firm more alarming whether the safety problem involved is serious or not.

American car buyers may go on strike and keep the vehicles they already own for another year or two. Better the known devil….