AUGUST 2024 NEWSLETTER

The Takata Airbag Nightmare Faces Another String of Sleepless Nights with ARC

Takata airbag recalls in 2014 caused widespread disruption in automotive, as the industry scrambled to supply new vehicles coming off the assembly line and remedy the 41.6 million vehicles equipped with 56 million defective airbags. In fact, the industry is still dealing with Takata, but the pending ARC Automotive, Inc. airbag recall is just as widespread.

According to the National Highway Traffic Safety Administration (NHTSA), as many as 51 million ARC air bag inflators could explode in a crash, presenting eerily similar conditions that led to the deaths of 36 individuals worldwide and injured countless others under the Takata defect. The federal agency recently issued a “supplemental initial decision” labeling the parts defective after a lengthy comment period and industry pushback.

Tennessee-based ARC Automotive Inc. and Delphi Automotive Systems LLC were named as the manufacturer of the flawed airbags.  While Delphi Automotive sold its airbag business to Sweden's Autolive in 2009, ARC had previously refused to issue a widespread recall even after regulators recommended it do so in May 2023. The air bags involved have been used by at least a dozen car manufacturers, including GM, Stellantis, Volkswagen and Hyundai. Another 30-day window for additional public comments will be exhausted before the formal recall is declared..Read the full article on the ABC News website.

Episode 15: The Next Level of the User Experience Includes Mobile

Market disruption has revolutionized how consumers shop, hail a ride, buy groceries, fetch a meal and even purchasing a vehicle. Joining host Sean Reyes in the FixedOps UX ThinkTank is John Schmidt, founder/CEO of Next Level. He’s breaking ground on the mobile service movement with a proprietary platform and suite of solutions that support better efficiency and more revenue. But don’t mistake John for an automotive outsider. He’s got more than 24 years as Fixed Operations Director in high volume, high CSI stores supporting brands like Ford, BMW, Cadillac & Kia. He shares more on the mobile opportunity and why it’s unfolding right now. Watch the full episode on the Recall Masters website.

The Consequences of Doing Nothing to Fix Your Retention Problem

A Blog Post by Sean Reyes, Chief Marketing Officer for Recall Masters  

Every dealership watches their expenses. You have to. Margins are tighter than ever and customer acquisition costs are going through the roof as it gets harder to lure new car shoppers into the dealership. We’re leaning more heavily on fixed operations to bridge the gap from lost vehicle sales and dismal F&I revenue. Not so fast, clever dealers. 

Even the service department is under assault from low-price independent shops and same-day-service retail auto repair centers. These are the conditions causing headaches for dealer principals, while also opening up opportunity for stores that are getting aggressive with their customer retention effort.

Everyone wants better customer retention and the documented outcomes are clearly desirable. On average, repeat customers spend 67% more than new customers. Increasing customer retention rates by just 5% can increase profits by 25% to 95%, according to research by Bain & Company. 

Better retention also leads to better cost efficiency. It costs five times more to acquire a new customer than to retain an existing one. We’ll spend less money on marketing and other promotions that require deep price discounting. Satisfied, loyal customers are also more likely to refer new customers, which can result in up to 16% more profitability, according to Wharton School of Business...Read the blog post in its entirety on the Recall Masters website.

Tesla Hoods Could Detach Due to Faulty Latch - 1.85 million vehicles affected

Tesla is recalling 1,849,638 cars due to latches that could detach hoods while driving. Affected models include the 2021-2024 Tesla Model 3, Model S and Model X, as well as the 2020-2024 Model Y. Tesla hopes to remedy the problem with software, warning drivers when hoods are not properly latched. Read more about this recall campaign on the NHTSA website.

394,029 Older Model BMW vehicles Affected by Defective Airbags

BMW is recalling more than 394,000 cars due to concerns over Takata airbag inflators that could explode, sending sharp metal fragments striking the driver and other passengers, ultimately resulting in injury or death. Affected models include older model vehicles. Read more about this recall campaign on the NHTSA website.

More Recall Campaign News

• Stellantis recalls 332,000 for seat belt buckle switch sensor
• BMW recalls 291,112 X3 models for cargo rail that can detach in an accident
• Hyundai has recalled almost 55K vehicles due to a fuel pump that may fail and cause a loss in power
• Almost 50K Hyundai Santa Fe models recalled to to second-row bench seat assembly
• Chrysler recalling 15,910 Pacifica Plug-in hybrids due to risk of battery pack fire
• Hyundai rollaway risk leads to recall of 12K+ older model Genesis Coupe vehicles.