DRIVING AUTOMOTIVE SAFETY
We are proud to partner with 9/10 of the world’s leading automakers.
Navigating the complex terrain of automotive product safety is crucial in an industry marked by heightened safety awareness. The ramifications of mishandling a product recall extends from reputational damage to potentially ruinous financial consequences. Driven by a steadfast commitment to safety, the majority of product recalls initiated by the sector are precautionary, resulting in an elevated frequency. Moreover, the continued adoption of modular designs, common product platforms and supply-chain partners, means that a single defect in one component can result in sector-wide complications.
The ongoing technological shift towards electric and autonomous mobility introduces new challenges, underscoring the criticality of product safety and recall management in this transformative era.
Whether you’re planning for — or currently facing — a product recall or any other in-market product incident, our experts are on hand to support you.
As the automotive industry accelerates toward an autonomous, electrified, and connected future, the escalating complexity of vehicles marks the onset of a new era fraught with brand and reputational risks.
At the heart of the sector’s transformation lies the intricate and stringent safety requirements embedded within evolving technologies. From lithium-ion batteries to Advanced Driver Assistance Systems (ADAS), V2X, and beyond, these innovations serve as the linchpin, demanding a zero-tolerance approach towards defects.
Discover below how Sedgwick Brand Protection is uniquely positioned to support you in navigating this dynamic risk landscape.
PRODUCT RECALL MANAGEMENT FOR AUTOMAKERS
Over the last 10 years, global automotive recall events have increased 4.8% annually.
In the event of a vehicle recall, quick and decisive action helps automakers maintain compliance with relevant regulatory agencies, while also safeguarding brand image, preserving customer relationships and controlling costs. Without the appropriate plan, expertise and people in place, a product recall event can cause irreparable brand damage.
Since 1995, we’ve helped the world’s leading automakers and component manufacturers uphold their commitments of product safety to customers, supply chain partners and regulators. With Sedgwick Brand Protection, you have access to a completely scalable, end-to-end product recall solution, coupled with unrivalled automotive experience.
We have successfully managed more than 7,000 of the most sensitive and time-critical recall events, spanning 100+ countries and 50+ languages.
In an era of increasing adoption of AI, it is time OEMs leverage technology to enhance recall management while improving customer satisfaction. Our virtual inspections are the first step.
Our innovative ‘industry-first’ virtual inspection solution is utilized by some of the world’s leading automakers to help efficiently – and cost effectively – manage a host of recall and remediation events, from airbags, to brake boosters, to seatbelts, and much more. Whatever your requirement, the solution’s modular design and infrastructure is flexible to accommodate.
Our customized solution is designed to validate whether an owner’s vehicle is impacted by a specific safety issue or defect. Once an owner has uploaded required details and photos for virtual inspection, they are sent personalized guidance on next steps in responding to your recall or remediation program.
By conducting these initial evaluations virtually, OEMs are narrowing the scope of their recalls, refining the impacted population, and significantly reducing costly and inconvenient in-person inspection.
The portal empowers OEMs to validate repairs or aftermarket changes that result in the vehicle no longer being subject to recall. Similarly, to the degree the required repair has geographic limitations, the OEM can make determinations on whether a repair is in fact required.
Discover how you can bolster customer satisfaction and recall completion rates with our virtual inspection solution – simply click on the ‘discover more’ button below. To request a demo, please complete the short contact form at the bottom of this page and a member of our team will be in touch.
VEHICLE & OWNER DATA ENHANCEMENT
Accurate vehicle and owner information is crucial to achieving higher repair/completion rates when facing a product recall.
On average, there is a 20% change of vehicle ownership annually and 11% change of address annually; many databases that track vehicle ownership are seldom updated frequently, meaning that ownership data (including contact information) is often out-of-date – this can make it extremely difficult to contact vehicle owners in the event of a product recall, warranty issue or repair.
Our proprietary data management solutions provide updated addresses, emails and phone numbers for the most comprehensive vehicle owner insights in the industry. We can also obtain information on VINs that have been scrapped, stolen or exported and are no longer in use on the roads. This immediately boosts repair rates, eases the strain on parts planning and reduces the burden on dealership staff.
Furthermore, we are able to track current disposition status (including non-responding vehicle owners) and manage VINs that come back into service, maintaining compliance with regulatory agencies.
Revolutionizing aftersales through innovative remote repairs.
In the fiercely competitive aftersales market, alternative repair solutions represent a strategic differentiator. Trusted by the world’s leading automakers our Remote Repairs solutions elevate the customer experience, offering unparalleled levels of convenience. By eliminating the need for drivers to visit physical locations, OEMs and dealers can swiftly address issues through our ‘pop-up’ repair centers. We deploy mobile technicians precisely when and where it suits the vehicle owner.
Our mobile repair solutions are indispensable for automakers seeking to penetrate rural markets, where franchised dealer service stations are neither nearby nor convenient. Simultaneously, they prove invaluable in major metropolitan areas where a substantial number of VINs require prompt and efficient repair.
Whether arising from a “lemon law” claim, as part of a product recall, or due to other circumstances, the need to repurchase or replace a vehicle is a universal challenge faced by all automakers.
Regardless of the cause, buybacks entail intricate financial transactions, logistical challenges, and stringent regulatory compliance, often overwhelming internal OEM resources.
Trusted by the world’s leading automakers, we specialize in providing industry-leading reacquisition services. Through direct collaboration with vehicle owners, we proactively resolve issues before escalation, resulting in substantial cost savings.
Our holistic management of reacquisitions leverages expertise in navigating diverse local laws governing auto buybacks. Supported by an industry-leading, highly automated platform, our process is streamlined and efficient, effectively helping to mitigate legal risks. This strategic approach empowers automakers to concentrate on their core duties while entrusting the intricate complexities of reacquisitions to our proven capabilities.
WARRANTY & SETTLEMENT PROGRAMS
Developing and deploying warranty solutions can act as a strategic differentiator for automakers, propelling them to the forefront of the highly competitive sector.
While often perceived as cost centers that accumulate expenses during product recalls, well-managed warranty programs can be instrumental in maintaining consumer engagement, ensuring satisfaction, fostering loyalty, and safeguarding the brand in times of crisis.
We provide comprehensive support to automakers across all facets of warranty and settlement reimbursement. This includes handling claim submission, document validation, customer care, funds disbursement, case resolution, and audit reporting – all while ensuring compliance with relevant settlement requirements.
To address the challenge of gathering essential information and supporting documents for warranty claims, our industry-leading proprietary recall and warranty application solution empowers customers to seamlessly submit their claims along with the necessary documentation. Upon receipt of this information, we initiate a meticulous process of quality inspections, ensuring precision, eliminating duplicate claims, and mitigating the risk of potential fraud.
CLAIM MANAGEMENT SYSTEMS
Streamlining automotive claims management through dynamic portal solutions.
When facing a product recall, robust data management and meticulous record-keeping play a pivotal role in ensuring effective customer engagement, regulatory compliance, and risk mitigation. The complexity intensifies when warranty and settlement claims enter the picture.
To address this intricate landscape, our electronic claim and case management services are designed to seamlessly integrate with OEMs’ systems and processes. Facilitated through an innovative web portal, both vehicle owners and settlement coordinators can communicate electronically on various aspects, including claim status, document exchange, funds disbursement, case diary entries, and vehicle owner information. This streamlined electronic communication platform significantly enhances the efficiency and transparency of the entire claim process.
RETRIEVAL & DISPOSAL
We provide the automotive industry’s most extensive retrieval and disposal services, ensuring rapid and compliant remediation on an global scale.
Return logistics: our services encompass global end-to-end solutions for the removal, processing, storage and return or destruction of vehicles and their parts. Whether retrieving a single part for investigation or remanufacturing, recovering an entire vehicle, or refurbishing returned vehicles for future use, we provide comprehensive logistics and infrastructure support for commercial, warranty, or end-of-use returns.
Hazardous waste retrieval: we ensure that damaged, defective and obsolete vehicle parts are disposed of in compliance with numerous – sometimes conflicting – international and regional regulations. Our offerings include environmentally conscious recycling and repurposing options, covering hazardous waste associated with airbags, batteries, chemicals, seatbelt tensioners, modules, and much more.
Our comprehensive services cover every aspect, from data processing and secure transportation to meticulous documentation, regulatory reporting, certified destruction, and safe, compliant recycling and disposal. Additionally, we can provide tailored solutions to accommodate your specific needs.
INDUSTRY-LEADING CALL CENTER SOLUTIONS
With Sedgwick Brand Protection, gain 24-7-365 access to a global team of brand ambassadors ready to field calls from concerned customers.
Whether due to a new or ongoing automotive product recall, warranty issue, or an influx of goodwill claims or reimbursements, you need a partner you can trust to improve inquiry response times while ensuring the customer experience upholds your brand promise.
Trusted by 9 out of 10 of the world’s leading automakers, our deep industry experience and knowledge of the sector is unparalleled. Our brand ambassadors view every interaction as an opportunity to create a positive post-purchase experience for your customers.
The result is loyalty rooted in more than warranty programs and goodwill, but rather Customer Lifetime Value. Our call center solutions are flexible and scalable to meet your needs. Since 1995 we have provided automakers with:
- Instant on-demand support that adds flexibility and agility to existing customer engagement infrastructures, alleviating pressure on resources as call volumes surge – ensuring vital day-to-day business operations are not compromised.
- Scalability in size and duration, from short-term engagements to long-term programs in response to one-time product recalls or persistent issues. Flexibility on-demand – simply dial up and down as required.
For over a decade, Sedgwick brand protection has published its quarterly Recall Index report. Downloaded in more than 100 countries, the Index has established itself as the definitive guide to automotive product safety. Access high-level insights below and download our latest edition in full.
U.S. Automotive Product Safety & Recall Insights
Quarter 3, 2023
NHTSA issued 197 automotive recalls in Q3 2023, a 15.8% decrease compared to the previous quarter. The number of impacted units was also lower, going from 8.21 million in Q2 2023 to 7.92 million in Q3.
Electrical systems was the leading cause cited for NHTSA recalls again in Q3, linked to 41 events. Equipment and power trains tied for the second-most recalls with 20 events each. Hydraulic service brakes were only linked to five recalls but impacted 3.41 million units, more than any other category. Back-over prevention equipment affected 1.28 million units across 13 recalls in Q3, making it the second-highest category by volume.
Automobiles was the largest product category of recalls with 176 events in Q3 2023, down from 214 last quarter. The equipment category had 20 recalls that impacted 317,530 units. There was one recall for tires and no recalls for child seats in Q3 2023.
Quarter 2, 2023
NHTSA issued 234 automotive product recalls in Q2 2023, a decrease of 4.5% compared to Q1 2023. The number of recalled units increased slightly, from 7.6 million in Q1 2023 to 8.2 million in Q2 2023.
Electrical systems were the leading cause cited for NHTSA product recalls, linked to 51 events compared to 48 last quarter. Back-over prevention was responsible for the most units recalled with 1.7 million, though there were only six product recalls for this concern. Air bags were second with 1.3 million units, but only accounting for five product recall events.
Automobiles were the largest product category of recalls with 214 events in Q2 2023, down two events compared to last quarter. The equipment category had 18 recalls that impacted 179,350 units. Child seats and tires had one recall each.
Quarter 1, 2023
NHTSA issued 245 automotive product recalls in Q1 2023, an increase of 3.4% compared to the previous quarter. The number of recalled units also increased slightly, from 7.5 million in Q4 2022 to 7.6 million.
Electrical systems were the leading cause cited for NHTSA product recalls, linked to 48 events compared to 33 last quarter. This category was also linked to the most units recalled with 1.7 million units, or 22.1%. Equipment had the second most product recall events with 46, though only 263,464 units were impacted.
Automobiles were the largest category of NHTSA product recalls with 216 in Q1. The number of units impacted quarter-over-quarter also held steady with 7.32 million automobiles, compared to 7.30 million in Q4 2022.
European Automotive Product Safety & Recall Insights
Quarter 3, 2023
There was a 1.4% increase in automotive recalls across the UK and Europe from Q2 2023 to Q3 2023, with the number of events increasing from 214 to 217. This is only the third quarter in more than 10 years that saw more than 200 automotive recalls and the second-highest quarter for events in that same period.
There were 164 recalls tied to injuries in Q3 2023, reflecting a 12.3% increase from the 146 reported in the previous quarter. Fire risk was the second-most common cause for recalls, linked to 38 events as a single concern but rising to 44 recalls if other factors such as injuries and environment are included. Passenger cars was the most common product category recalled in Q3 2023 with 147 events. Motorcycles was the second-most-recalled product category with 15 events, followed by lorries with 10 recalls.
The UK remained the country with the most recall alerts for the seventh consecutive quarter with 96 notifications in Q3 2023. Germany issued the second-highest number of alerts with 68, down from 74 notifications last quarter. France submitted 36 alerts in Q3 2023, up slightly from the 31 it had in Q2.
Quarter 2, 2023
There was a 12.6% increase in automotive product recalls across the EU and UK from 190 in Q1 2023 to 214 in Q2 2023. At the halfway point of this year, European automotive recall activity was at its highest level in more than ten years with 404 events.
There were 146 product recalls tied to injuries in Q2 2023, reflecting a slight decrease from the 152 reported in Q1. Fire risk was the second-most common cause for recalls, linked to 43 events as a single concern, but rising to 59 recalls if other factors are included.
In Q2 2023, the UK remained the country with the most product recall alerts with 93, a slight increase compared to the 83 alerts in Q1 2023. Germany issued the second-highest number of recall alerts with 74, up from the 63 notifications last quarter. France submitted 31 recall alerts in Q2 2023.
Quarter 1, 2023
There was a 2.6% decrease in automotive product recalls across Europe from Q4 2022 to Q1 2023, with the number of events falling from 195 last quarter to 190 this quarter. There were 152 product recalls tied to injuries, reflecting a slight decrease from the 157 reported in the previous quarter.
Passenger cars were the most common product recalled in Q1 with 106 events, a 15.2% decrease from the previous quarter. Passenger car recalls accounted for 55.8% of the total automotive product recalls in Q1 2023.
In Q1 2023, the UK remained the most active country with 83 product recall alerts, a slight decrease compared to the 89 in Q4 2022. Germany issued the second highest number of alerts with 63, followed by France with 30 alerts.
SEDGWICK BRAND PROTECTION
The world's leading product recall company
For over 25 years, companies of all sizes and sectors have trusted our expertise in preparing for and managing their product-related challenges. Since 1995, we’ve successfully managed more than 7,000 of the most sensitive and time-critical product recall programs, spanning 100 countries and 50 languages.
Whether your in-house teams need scalability to maintain daily operations during a product crisis, or you require a complete end-to-end product recall solution, we have the experience to protect your brand and peace of mind.
If you’re currently facing a product recall, or seeking to enhance your recall readiness, contact us now.
Whether you’re planning for — or currently facing — a product recall, market withdrawal, or any other in-market product incident, our experts are on hand to support you.