Tuesday, July 15, 2014

July 2014 SDADA Column

This year, 2014, is the year of the automobile recall. It’s only July, yet vehicle manufacturers already have recalled more vehicles this year than any other year in history.

According to the National Highway Traffic Safety Administration, there have been recalls for 37.5 million cars this year in the U.S. The previous record was 30.8 million in 2004.

Despite that fact that faulty ignition switches at GM have received the most of the attention, virtually every dealership in South Dakota has been affected by recalls. Ford, Chrysler, Nissan, Hyundai, Mazda, BMW, Toyota, Subaru, Honda, Lexus and Kia have all had recalls in the last couple of months on some model or part.

General Motors was the trend setter. After being burned by the ignition switch issue in the first month as CEO at GM, it would seem that Mary Barra has decided to get all of the recalls out of the way right away. GM vehicles make up about two-thirds of the vehicles that have been recalled with more than 25 million recalls in the U.S.

It seems other automakers are aggressively scheduling recalls now since GM is providing cover with all of their headlines. No automobile manufacturer want to be accused of dragging their feet after watching what has happened to GM.

Why all the recalls? Is it because cars are more complex (more electronics) than ever and there are so many things that can go wrong? Is it because of faulty workmanship at the manufacturer level? Is it, as Mary Barra suggested at GM, an "underlying cultural problem" (read "arrogance") for manufacturers? Is it because people are keeping their cars longer than in the past?

Is it because of less manufacturer oversight of suppliers than in the past? Is it because of faulty workmanship at the supplier level? Is it because of the regulatory environment in our federal government? Is it our litigious society?

I will suggest that it is a combination of all of the above factors and probably some other that I have not listed. But the bottom line is that our customers want and need information about their vehicles.

Despite the consistent numbing reports of more recalls on the evening news, the dealers have been the stars. We have taken this opportunity to talk to our customers. The dealerships have softened the blow for GM and other OEMs.

Dealers are the front line contact for the manufacturers in any situation like this. The manufacturer may call for a the recall, but people take their vehicle to our stores for the repair.

I hope that the manufacturers remember what an asset that the dealers are for them at times like this. How soon will they revert to their "what have you done for me lately" attitude that they usual exhibit.

Jeb Bush, Jay Leno and Beck Weathers to Keynote 2015 NADA Convention in San Francisco

San Francisco will host the 2015 NADA Convention & Expo from Thursday, January 22, to Sunday, January 25. This will be the 16th time that the NADA convention has been held in San Francisco since 1948.

The keynote speakers include former Florida Governor Jeb Bush and NADA Chairman Forrest McConnell, III, on Friday, January 23; Jay Leno and NADA Vice Chairman Bill Fox on Saturday, January 24; and inspirational speaker Beck Weathers on Sunday, January 25.

The American Truck Dealers (ATD) Convention & Expo runs concurrently with the NADA convention at the Moscone Center. The NADA expo runs January 23-25.

Attendee registration and housing opens on Monday, July 21. For more information, visit www.nadaconvention.org.

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