Case Study: A strategic framework for mastering airbag recalls

Introduction: mastering a complex airbag recall with specialized containment and compliance

The secure collection and disposal of recalled products is among the most complex and essential aspects of a recall. Beyond removing unsafe products from circulation, companies must navigate stringent regulations to ensure responsible, compliant disposal. When a defective third-party component affects millions of units across multiple regions—and disrupts an entire sector—the scale and complexity of these challenges intensify.

Challenge

A global recall of automotive airbags containing ammonium nitrate presented significant safety and logistical challenges. Given the compound’s explosive properties, its transportation and disposal were subject to strict regulatory controls.

For one leading automaker, the recall impacted more than a million vehicles across multiple models and markets. The complexity was further heightened by varying disposal regulations across jurisdictions, requiring tailored, country-specific solutions rather than a standardized global approach. Additionally, the age of the affected fleet introduced data limitations, often leading to lower recall repair rates and necessitating a long-term, adaptable strategy.

To ensure compliance, consumer safety, and environmental responsibility, a secure and scalable recall solution was needed.

Solution

Sedgwick Brand Protection developed a tailored, end-to-end solution to address the complex challenges of this recall, incorporating:

• Specialized containment solutions – we custom-designed, produced, and provided UN Certified storage and transport containers, rigorously tested under extreme conditions by an independent laboratory. These containers were specifically engineered to safely handle and store hazardous materials, ensuring compliance with stringent safety regulations.
• Streamlined logistics – once full, containers were collected through a dedicated scheduling system and transported to a Sedgwick-owned secure facility—one of only two environmentally approved and licensed locations equipped to complete hazardous remediation tasks of this nature.
• Regulatory compliance – every stage, from collection to final disposal, was executed in full compliance with local and international regulations, mitigating environmental risk and ensuring legal adherence.
• Transparency and reporting – to maintain full traceability and regulatory compliance, the automaker received comprehensive documentation, detailing volumes and product codes of all disposed airbags.

Results

By establishing a structured, compliant, and scalable disposal process, the automaker successfully navigated the complexities of this high-risk recall:

• Seamless execution – every stage of handling, storage, transportation, and disposal was conducted safely and efficiently, and incident free.
• Regulatory assurance – the automaker now has a rigorously tested, regulator-approved protocol in place, ensuring compliance and readiness for any future recalls of this nature.
• Sustained progress – while data limitations present ongoing challenges, repair rates have been strong, demonstrating the effectiveness of proactive notification and recovery strategies.

For more than 30 years, Sedgwick Brand Protection has helped companies navigate the most complex recall challenges. From stringent regulatory requirements to multi-jurisdictional compliance and the safe handling of hazardous and sensitive products, our expertise ensures a decisive response that mitigates risk and upholds brand integrity and consumer trust.

Key takeaways

• Accountability resides with the manufacturer, irrespective of the origin of the defective or faulty component. Companies must be fully prepared to engage with impacted customers, develop tailored solutions, and manage the recall process from start to finish, ensuring full compliance with local and national law at every stage.
• Hazardous components, such as ammonium nitrate or lithium-ion batteries, necessitate specialized handling and foresight. Companies must address the complexities of transportation, handling, and disposal well in advance of a potential recall, implementing jurisdiction-specific compliant solutions to mitigate risk and ensure seamless execution.
• Navigating regulatory complexity demands specialized expertise. Multi-jurisdictional recalls require bespoke strategies to meet a diverse array of environmental and safety regulations. Sedgwick Brand Protection delivers proven, compliant processes and localized expertise to expertly manage these challenges, ensuring seamless and efficient recall execution.

About Sedgwick Brand Protection

Brand and reputation are the most valuable and vulnerable assets a business has. Brands embody everything a business does, and its customers expect.

Nothing says more about a company’s commitment to its customers than its efforts to uphold promises of safety, quality, and service. That’s why companies are often remembered more for how they handle an in-market challenge than for the problem itself. We know what it takes to manage recalls in a way that upholds your commitments to customers, supply chain partners, and regulators.

Trusted by the world’s leading brands and businesses, Sedgwick Brand Protection works in partnership to manage the risks and minimize the impacts of in-market business and product crises. Since 1995, we have managed more than 7,000 of the most sensitive and time-critical product recall and remediation programs, spanning 150+ countries and 50+ languages.

To discover more about our product recall and incident response solutions, visit: www.sedgwick.com/product-recall

1MM

affected units

Multiple

vehicles models and years impacted

Custom

UN Certified storage and transportation solution devised

Multi-jurisdiction compliance

upheld