TSX69

Auto Recalls Climbing Under Federal Pressure

Washington -- Automakers this year are on pace to recall the most vehicles since 2004 as they respond to even borderline safety risks and the federal government presses the industry to react faster.

In the first six months of the year, automakers recalled 10.2 million vehicles, about twice the number recalled during the same period in 2009, according to a Detroit News review of federal data. For all of last year, automakers recalled 16.4 million vehicles. More than half were called back in the second half of the year, when Ford Motor Co. and Toyota Motor Corp. recalled a combined 8.8 million cars and trucks.

For all of 2010, the industry is on track to recall more than 20 million vehicles, a volume not seen since 2004, when the tally reached a record 30.8 million cars and trucks.

The spike this year comes in the wake of a highly publicized series of Toyota recalls. Since November, the Japanese automaker has recalled more than 8.5 million vehicles, including 6 million in the United States, to deal with a risk of unintended acceleration and other problems.

But Toyota was fined a record $16.4 million by the U.S. government for failing to recall 2.3 million vehicles quickly enough.

"The auto industry watched the hot spotlight that Toyota faced and has determined the more productive course is to recall vehicles early and often," said Nicole Nason, who was the head of the National Highway Traffic Safety Administration from 2006-08.

NHTSA is taking a harder line with automakers, demanding recalls even if automakers disagree.

Automakers for the most part aren't fighting the efforts, recalling vehicles for issues as minor as engine knocking noises when the wrong grade of gasoline is used.

"Recall numbers have been remarkably high since the mid-'90s when car technology really began getting complicated, but this year they've been far more publicized," said Ray Zhou, a senior analyst at Edmunds.com.

"Drivers are more alert to any potential safety issues and more likely to report any potential flaws and perhaps even pay closer attention to recall news."

Automakers more cautious

In the past, automakers often spent months arguing with NHTSA over the scope of recalls or whether to call back vehicles.

Toyota, for example, boasted in a 2009 memo that a negotiated recall of 55,000 floor mats had saved it more than $100 million.

But not anymore.

There have been more than 300 vehicle recall campaigns during the first half of 2010, and Toyota is leading the pack in vehicle numbers and response.

The automaker has conducted 12 separate recall campaigns, calling back 4.63 million vehicles (though some represent multiple campaigns for the same vehicle).

"We are certainly moving quicker," said Toyota spokesman Brian Lyons, explaining the company's increase in recalls.

He noted that Toyota has recalled and stopped selling vehicles when influential Consumer Reports magazine raised questions about a vehicle that had passed all federal safety tests. "We are paying increased attention to customer complaints," he said.

General Motors Co., Chrysler Group LLC, Honda Motor Co., and Nissan Motor Co. have recalled more vehicles in the first half of the year than they did in all of 2009.

GM has recalled 2.9 million vehicles this year, its numbers boosted by two large callbacks, including 1.3 million vehicles for faulty windshield wipers.

"The number of recall campaigns reflects our desire to ensure customer confidence and peace of mind when it comes to real and perceived safety in GM cars and trucks," GM spokesman Alan Adler said.

"Recall numbers tend to increase and decrease each year depending in part on the size of vehicle populations affected."

Some recalls have been over minor issues.

GM recalled the 2010 Cadillac SRX because if users used low-octane fuel (despite what the owner's manual said) and engaged in aggressive driving, it could result in a pinging or knocking sound from the engine.

Honda has recalled 1.1 million vehicles; Chrysler, 960,000; and Nissan, 780,000.

Across town, Ford, which recalled 4.5 million vehicles in 2009, recalled 34,000 vehicles through June 30. On Friday, that total jumped to almost 68,000 when the automaker recalled about 33,700 Transit Connect vans.

"We take action when needed," said Wes Sherwood, a Ford spokesman. "Part of quality is reacting to recall issues quickly and having a very transparent and open process."

Complaints spur probes

NHTSA is getting more consumer complaints, and it's moving faster and investigating them more aggressively.

"We are proud to have the most active defect investigation program in the world and will continue doing everything in our power to ensure cars are safe and automakers are held accountable," NHTSA spokeswoman Julia Piscitelli said.

This year, NHTSA has received 2,000 complaints about runaway vehicles -- with more than 1,400 lodged against Toyota. That compares to 1,200 complaints last year and 800 in 2008.

The agency is even stepping in after a few complaints.

On June 1, NHTSA opened an investigation into nearly 250,000 Ford vehicles after three complaints and no reports of accidents or injuries. The agency warned drivers not to use unsecured all-weather floor mats.

A month earlier, NHTSA opened an investigation into 161,000 2007 Dodge Calibers over sticky accelerator pedals after getting five reports from consumers alleging the pedals became stuck while they were driving -- but no accidents.

Chrysler agreed to a recall of 34,600 2007 Dodge Calibers and 90 Jeep Compasses worldwide with potentially defective parts.

On Friday, the Auburn Hills automaker recalled 22,000 vehicles as "part of our ongoing quality improvement process," and the problem was "discovered internally through improved quality control processes."

Chrysler said quick recalls are the product of better quality.

Prior to Toyota's woes, small recalls garnered little or no attention, and even midsize recalls got little ink. Now, nearly every recall by a major automaker gets widespread coverage on cable television, newspapers and websites.

"Clearly, there's a lot of oversight on the industry -- not just from the government, but from the safety advocates," Ford's Sherwood said.

NHTSA has been criticized for not being more aggressive with Toyota earlier. Since 2000, it opened eight separate investigations into unintended acceleration at Toyota but took little action until a high-profile crash that killed four people in 2009.

NHTSA seeks more control

Today, Congress is weighing whether to give NHTSA more power to force faster recalls. Forcing a recalcitrant automaker to call back vehicles can easily take two years or more if a company objects.

NHTSA wants to complete a preliminary investigation within four months and then a full-blown engineering analysis within a year.

David Strickland, NHTSA's chief, said earlier this year that he wants to speed up the agency's recall investigations and make it easier to file a complaint. However, he said he didn't think NHTSA should change how it regulates because of intense public interest.

All the agency expects, he said, is for automakers to tell the truth.

"You will have no issues with NHTSA if you disclose timely and in a thorough fashion. We will be fair," he said. "That's the only thing I can ask."

Nason, the former NHTSA chief, said recalls are a fact of life.

"Until we build the indestructible car," she said, "you'll never eliminate the need for recalls."

dshepardson@detnews.com (202) 662-8735

smarty666

^ geez, I wonder why??? Maybe it had something to do with the whole Toyota fiasco at the beginning of the year! I'm glad they are on the rise! The Toyota thing got all the other manufacturers scared straight and so they put the recalls out to be safe rather than sorry and get into Toyota's position.

The people that benefit the most from these increase recalls is us consumers. Our safety should be everyone's top priority, and unfortunately, as we have found out, that is not always true with these car manufacturers! Score one for the good guys!