Broken Vehicle Recall System Puts Unsuspecting Dealers at Risk
"Safety Recalls: State of the Retail Industry" details threats, opportunities for how automotive retailers handle vehicle safety recall management.

"Safety Recalls: State of the Retail Industry" details threats, opportunities for how automotive retailers handle vehicle safety recall management.
LAS VEGAS – Between 20% to 25% of all vehicles on the road have one or more open safety recall at any given time. However, government databases have an approximate 30% error rate, leading many auto dealers to unknowingly purchase and sell vehicles with open safety recalls. The findings were part of "Safety Recalls: State of the Retail Industry," a report released today by AutoAp, Inc., the industry's leading auto safety recall software company.
To obtain a copy of the report, click here.
There have been more than 5,000 vehicle safety recalls since 2014, affecting millions of vehicles. Because many vehicles are covered by multiple recalls, the average vehicle on the road today has 1.2 recalls. Worse, often, there are lags between manufacturers assigning recalls onto vehicles and either the manufacturer or government publishing them for dealers to learn if their inventory is affected. In addition, human error often leads to misclassification of recalls, incorrect vehicle makes or incorrect model years through the government and manufacturers.
"Many automotive retailers do not realize how badly the safety recall ecosystem is broken," said Mark Paul, CEO of AutoAp. "This impacts dealerships of all sizes, brands and locations through liability and compliance issues, as dealers often buy and sell vehicles with open safety recalls and do not know it – through no fault of their own."
Many auto dealers continue to use manual processes to track open safety recalls, or worse, ignore the problem altogether due to the time-consuming, error-prone and delayed data. In addition to liability issues, dealers are often missing out on a valuable revenue stream as recall repairs are covered by manufacturer warranty reimbursements.
"Dealers simply cannot know whether or not vehicles have an open recall using their current methods," Paul said. "The best way to tackle this challenge is through an automated system that verifies VINs using advanced technologies and with multiple sources, on a nightly basis with minimal initial effort by dealers."
Paul urged dealers to take a handful of simple steps to get started.
Write a policy for the dealership or dealership group that spells out how the organization will handle open recall needs – and have everyone sign it;
Appoint one team member within the organization to oversee recall operations – with both the responsibility and authority in this critical area;
Implement an automated process to verify, monitor and report recalls;
Use daily reporting to identify open recalls and track repair status.
Dealers who follow these simple steps have significantly lower open recall rates among their inventory. Dealerships who develop a fully automated system reduce their open recall rates by nearly 90%.
In other findings:
Hawaii had the highest open rate at 23.4%; Delaware had the lowest at 5.6%;
Currently, only 44% of dealerships have a written safety recall management policy;
100% of dealers surveyed said staying in compliance was critical. Yet none of the dealers surveyed said they check their own inventory for safety recalls every day;
Government fleet vehicles have the highest open recall rate at nearly 36%.
Originally posted on F&I and Showroom
More Fixed Ops

Extreme Temps Hinder EV Efficiency
American consumers might be happy to know that their preferred hybrids are slightly less impacted by extreme temperatures than fully electric vehicles, according to a new study.
Read More →
Ban on Air Bag Inflators by Chinese Maker Proposed
NHTSA blames 10 deaths and two serious injuries on what its investigators believe were illegally imported air bag inflators. It’s taking public comments before deciding whether to ban them outright.
Read More →
Fix It Forward Program Helps Man Regain Mobility
Albuquerque consumer who suffered a life-changing injury regains the use of his vehicle after Fiesta Volkswagen's service team shared his story with DOWC Cares.
Read More →
ASE Connects Partners With Worldpac to Build Technician Numbers
The collaboration is intended to help auto dealerships, automakers and after-market shops further develop the technician pipeline.
Read More →
Not as Tickled With Tires
U.S. consumers are finding less satisfaction with the rubber that meets their roads, though their loyalty to tire brands has lately inched up.
Read More →
Auto Recalls Sank Last Year
2025 Sedgwick data indicate that the number of vehicles affected fell to its lowest point in more than a decade.
Read More →
ASE Winter Registration Now Open
The deadline to register for the industry standard certification testing is March 31.
Read More →
U.S. Drivers Overdue for Major Services
Data shows dealers have ample opportunity ahead of the holiday travel season.
Read More →
Auto Dealers Losing Service Customers
Study finds that though overall service drive revenue is up, loyalty is eroding
Read More →
Jeeps Can Catch Fire
Hundreds of thousands recalled, some for second time, to address battery flaw
Read More →