• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Current price of oil as of July 1, 2026

1

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch

2

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

3

Current price of oil as of July 1, 2026

Auto recalls are spiking — here’s why

By
Doron Levin
Doron Levin
Down Arrow Button Icon
By
Doron Levin
Doron Levin
Down Arrow Button Icon
October 26, 2015, 1:00 PM ET
General Motors Co. Chief Executive Officer Mary Barra At Senate Hearing On Recalls
Mary Barra, chief executive officer of General Motors Co. (GM), speaks to the media following a Senate Consumer Protection, Product Safety, and Insurance Subcommittee hearing in Washington, D.C., U.S., on Thursday, July 17, 2014. General Motors Co. should have dismissed its top lawyer, said Senator Claire McCaskill, as the Missouri Democrat opened the fourth congressional hearing in as many months into why it took the automaker so long to recall fatally flawed vehicles. Photographer: Andrew Harrer/Bloomberg via Getty ImagesBloomberg Bloomberg via Getty Images
Add Fortune on Google for similar content.

Toyota recently announced it was recalling 6.5 million cars, due to a faulty window switch. Then Mazda announced it was recalling 4.9 million cars because of a defective ignition switch. If you’re wondering whether auto recalls are on the rise, they are.

The number of recalls by automakers has risen steadily in the U.S. for the past two decades. For the first three quarters of 2015, there have been roughly 141 recalls, covering about 34 million vehicles, which means it is pacing a bit below last year’s numbers, the NHTSA says. 2014 marked a record year for vehicle recalls in the U.S. More than 74 million vehicles in 902 separate cases, as documented by the National Highway Traffic Safety Administration (NHTSA). That number represents more than a quarter of all vehicles registered in the U.S. and the biggest total since 1999, when 55.5 million vehicles were recalled in 440 cases.

vehicle-recalls-2009-2014

What’s causing the surge in recalls? An analysis suggests there are several factors at work.

General Motors activism

In part, General Motors’ activism is credited for the 2014 spike. In early 2014, General Motors Co. issued what it thought would be a routine recall of 800,000 Chevrolet Cobalts for replacement of a defective ignition switch. But by the time GM finished recalling all the cars with the defective switches, the number was at 2.6 million.

Then GM acknowledged engineers and managers had known about the defect for at least a decade, and equally damning, federal regulators acknowledged it had access to the data too but failed to analyze it.

GM’s chief executive officer Mary Barra vowed the auto giant would do better. Since GM accepted federal monitoring in the wake of a $900 million fine to settle federal criminal charges, it accelerated the pace of recalls. GM sent notices to owners of 27 million vehicles in the U.S. in 84 separate actions – more than twice as many cars and trucks than it had manufactured worldwide in 2014.

Automakers also say advanced tracking systems allow them to isolate problem vehicles without having to check every one.

More government and consumer scrutiny

Consumer advocates such as the Institute for Highway Safety and the Center for Auto Safety have pushed for stronger safety standards, while plaintiff attorneys have won lawsuits against auto makers on behalf of drivers and passengers hurt and killed in accidents. (In fact, it’s notable that Volkswagen’s faked emission test results was not uncovered by regulators; it was first uncovered by the International Council on Clean Transportation, a non-governmental group specializing in air-quality issues.)

With such increased pressure from consumer advocates and lawyers, regulators, including NHTSA, are stepping up enforcement.

Mark Rosekind, who joined NHTSA as administrator last December, also has stated he will police the auto industry aggressively. Michelle Krebs, an analyst for AutoTrader, called Mark Rosekind “a new sheriff in town,” noting NHTSA “has been under as much scrutiny by Congress as the automakers for dragging their heels and not doing their job. The agency wants more funding, so it has to prove itself.”

Under Rosekind, NHTSA in July hit Fiat Chrysler Automobiles N.V. with a $105 million fine and ordered the automaker to buy back 200,000 Ram pickups and Dodge SUVs due to a fuel tank the government said was too prone to fire in a rear-end collision. FCA had been resisting NHTSA’s suggestion that it voluntarily recall the vehicles. Sergio Marchionne, FCA’s chief executive officer, finally relented, conceding that he had been slow to respond to a new, tougher regulatory climate.

Safety tech brings risks

Paradoxically, the technology that helps to develop safer vehicles also creates complexity and tests the limits of engineers’ ability to anticipate and prevent new dangers. Late last month, NHTSA contacted an additional seven automakers about possibly defective – and deadly – Takata airbag inflators in their vehicles. Nearly 20 million vehicles with suspect inflaters have already been recalled by 11 automakers.

The sheer number of airbags that must be replaced, due to possible explosion of inflators, has overwhelmed suppliers of replacements and repair facilities. Takata suspects that a chemical used to deploy airbags may degrade after exposure to humidity, causing them to explode during a crash and propel shrapnel into the cabin. The faulty mechanism has been linked to eight deaths and more than 100 injuries.

Since Barra’s testimony, GM has embarked on a companywide program called “Speak Up for Safety” that encourages any employee, dealer or other interested party to highlight any safety concern. The automaker then investigates. It assigns a safety engineer who could present findings to a committee led by Mark Reuss, executive vice president.

“Not only is there more regulatory scrutiny by various governmental agencies, the automakers are very wary of being on the wrong side of a recall tug of war with them,” said Jack Nerad of executive editorial director for Kelley Blue Book. “Those controversies can cost automakers dearly in both public perception and, as we have seen, by fines and liability awards that have reached unprecedented proportions.”

In other words, expect the trend to continue.

About the Author
By Doron Levin
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

U.S. Treasury Secretary Scott Bessent
EconomyDebt
AI’s $2.2 trillion deficit fix is already half fake, economists say
By Tristan BoveJuly 2, 2026
44 minutes ago
s
Personal FinanceSports
The sports economy is unaffordable at the bar, let alone the stadium
By Catherina GioinoJuly 2, 2026
46 minutes ago
m
Politicsfraud
Trump fights fraud by freezing funding for New York’s Medicaid Fraud Control Unit
By Ali Swenson, Geoff Mulvihill and The Associated PressJuly 2, 2026
47 minutes ago
Anthropic CEO Dario Amodei
AIEye on AI
Anthropic’s Fable model is back. But U.S. AI policy is still a mess
By Jeremy KahnJuly 2, 2026
52 minutes ago
sb
North AmericaU.S. Department of the Treasury
Scott Bessent goes after the top Mexican cartel’s new billion-dollar business: gas stations
By Fatima Hussein and The Associated PressJuly 2, 2026
53 minutes ago
t
PoliticsWhite House
Trump trots out the C-word — communism — not getting the memo that capitalism has been largely discredited with Gen Z
By Steven Sloan and The Associated PressJuly 2, 2026
1 hour ago

Most Popular

As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big Tech
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 days ago
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
8 days ago
Current price of oil as of July 1, 2026
Personal Finance
Current price of oil as of July 1, 2026
By Joseph HostetlerJuly 1, 2026
1 day ago
Trump got a $78K pension from the Screen Actors Guild in 2025 because he appeared in Home Alone 2 in 1992
Politics
Trump got a $78K pension from the Screen Actors Guild in 2025 because he appeared in Home Alone 2 in 1992
By Sasha RogelbergJuly 1, 2026
1 day ago
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
Success
CEO of $248 billion cybersecurity company says workers are about to face a ‘Darwinian moment’ thanks to AI: Evolve or get cut
By Emma BurleighJuly 1, 2026
1 day ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
5 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.