Error processing SSI file
Automakers struggle to cut costly recalls
Tighter design and engineering standards, rigorous inspections could save millions.
Increasing auto recalls
Experts and auto industry executives attribute the increased number of vehicle recalls to tighter federal requirements for reporting defects, growing use of the same parts on a number of vehicles, and the technical complexity of vehicles. Do you agree with automakers that vehicle recalls are not necessarily a reflection of poor quality?
Comment on this story
Automakers, hoping to reverse the industry's record number of vehicle recalls in 2004, are ramping up efforts to avoid major repair campaigns that are costing companies $1 million a day.
Recalls increased nearly a third last year to 30.6 million vehicles even as independent studies show overall vehicle quality is at an all-time high.
Experts and automakers blame the increased number of recalls on tighter federal requirements for reporting defects, the growing use of identical parts across an automaker's lineup and the complexity of modern cars and trucks. Also, the Internet has made it far easier for class-action lawyers and consumer advocates to reach large groups of car owners experiencing the same problems.
The typical recall now takes 250 days for an automaker to complete at an average cost of $1 million a day, according to the Automotive Industry Action Group.
The costs come as automakers are already pinched by increasing health care, material costs and huge rebates.
Consumers such as Grosse Ile pizzeria owner Joe Vitale have no sympathy. Tailgate cables snapped on both his 2001 Chevrolet Silverado and 2003 GMC Sierra pickup trucks. He forked over $1,200 to fix the Silverado and just received the recall notice on the Sierra.
"What a joke," said Vitale, 50. "For that kind of money you shouldn't have to worry. They're gonna lose me."
General Motors Corp. recalled more than 10 million vehicles in 2004, up from 7.8 million in 2003. And this month GM recalled 112,000 pickup trucks, vans and sport utility vehicles from the 2000 model year to fix steering wheel and brake problems.
John Devine, the automaker's chief financial officer, said last week GM could save "a couple of hundred million" dollars by cutting down recalls.
With that kind of money at stake, automakers are taking steps to reduce recalls -- from tighter design and engineering standards to more rigorous factory inspections.
"We're using internal indicators and computer software systems to help us find and fix those problems faster," said Steve Speth, director of the vehicle safety office at DaimlerChrysler AG's Chrysler Group. "When we do have a problem, we fix it faster and fix it right away."
Ford Motor Co. is relying more on Six Sigma, a statistical problem-solving program that empowers workers to find and solve problems.
"We have a number of disciplined programs and processes in place designed to deliver high quality vehicles to our consumers," Ford spokeswoman Kristen Kinley said.
One such process is the "batch and hold" system of delaying vehicle shipments from factories to showrooms until they are found to be problem-free. Ford used the system on its new Five-Hundred sedan and Freestyle crossover built in Chicago to make sure the vehicles didn't have quality problems at launch.
Ford wants to avoid quality problems and recalls that plagued the Focus small car and Expedition SUV in recent years.
At GM, vehicles are inspected as they move along assembly lines and are stopped or pulled for repairs when problems surface.
In all cases, automakers hope to flag potential quality and safety issues early in the design and engineering process. Automakers are also leaning on parts suppliers to detect problems.
"We make sure we have preventative testing for reliability," said the Chrysler Group's Speth. "It all has to be done in the design and engineering phase, all up front and suppliers do a lot of that in conjunction with us."
GM is renewing efforts to bring more engineers to the table earlier in the engineering process.
"We didn't used to bring in seal guys early. Now we bring in seal guys early," said Gary Cowger, president of GM North America.
Sometimes however, defects are missed despite due diligence.
GM had to recall 4 million pickup trucks in 2004 with tailgate cables that snapped. Cowger said only a few cables actually broke, but the automaker was compelled to recall millions of vehicles equipped with them anyway, inflating the company's 2004 recalls.
"It was hard to get at what the issue was because they weren't failing universally," Cowger said. "But when you can't scientifically get to the issue you're going to replace them all."
A more sensitive issue is the effect of the Transportation Recall Enhancement, Accountability, and Documentation -- or TREAD -- Act. The act was designed to avoid another Ford-Firestone tire debacle of 2000.
The act created an "early warning system" requiring automakers to report defects and warranty repairs related to parts that may affect safety.
The National Highway Traffic Safety Administration uses the data to quickly identify problems that might require an investigation that could lead to a recall. The lack of such information was cited for the delay in recalling millions of Firestone tires in the wake of several fatal accidents that occurred when treads separated, resulting in blowouts.
NHTSA spokesman Rae Tyson acknowledges the threat of being forced to stage an expensive recall is causing some automakers to simply take action sooner.
It's also more difficult for automakers to conceal problems from NHTSA that could lead to costly repair campaigns.
"Companies are being more open with the agency about problems brought to their attention," said Joan Claybrook, president of the Washington D.C. consumer watchdog group Public Citizen. The number of vehicles recalled, and the number of cars and trucks recalled voluntarily by automakers, has increased markedly over the past two years.
Of the 30.5 million vehicles recalled in 2004, 11.6 million were part of voluntary recalls. In 2003, just 19.06 million vehicles were recalled and of those, 10.1 million were as a result of a voluntary recall.
Automakers are divided over the impact of the TREAD act.
The Chrysler Group's Speth said the TREAD Act "has not resulted in one extra recall.
Jim Queen, GM's vice president of engineering, said the statute is causing the automaker to snap to it when defects are discovered.
"We're dealing sooner when we recognize things right now," said Queen.
The Internet has become another factor in the rise in recalls. Consumers can readily find vehicle defect and warranty information on the Internet, and can use the data to eliminate a particular vehicle or manufacturer from purchase consideration. Such information is also used to pursue lawsuits and may lead to the establishment of Websites such as www.pistonslap.com, where plaintiffs in ongoing product liability suits can share information.
"Because that data is made public, automakers are more inclined to do a recall before the customer actually confronts the problem," said Erich Merkle, an auto industry analyst with IRN Corp. in Grand Rapids.
Another factor in the recall spike is the growing use of the same part or parts across product lines as automakers simplify manufacturing and cut costs.
"When you do have a recall it is likely to affect a larger population than it might have five years ago," said NHTSA's Rae Tyson.
Vehicles are also becoming technically more complex, which can lead to mistakes in the design, engineering or manufacturing process.
"Consumers like all these gadgets, but each one of these enhanced technology features which makes the odds of having a recall that much greater," said Merkle.
Recalls may be on the rise, but ironically, so is quality. GM says its warranty costs per vehicle have declined by 43 percent over the past eight years and 26 percent over the past three years for the Chrysler Group.
The number of problems reported on a new 2004 car or truck during the first 90 days of ownership declined to 1.17 from 2.72 in 1998, according to J.D. Power and Associates, which publishes an annual initial quality study.
Long-term dependability has also improved to 2.69 problems in 2004 from 2.73 in 2003, according to J.D. Power's annual study of problems in three-year old vehicles.
Public Citizen's Joan Claybrook warns that the increase in recalls should not signal to consumers vehicles are generally less safe.
"Cars are actually safer with all the added safety features."
You can reach Ed Garsten at (313) 223-3217 or egarsten@detnews.com.
Copyright © 2005
The Detroit News.
Use of this site indicates your agreement to the Terms of Service (updated 12/19/2002).