Total recall

22 April 2014 By Olaf Storbeck

GM, Toyota and VW recently found problems in 16 mln cars between them. Industry recalls are rising thanks to shorter development times and more sharing of parts and production across models. The financial benefits outweigh the risks – as long as carmakers pounce on errors early.

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General Motors has recalled 7 million vehicles in the first quarter, many of them due to faulty ignition switches. The company says recall-related repair costs could total $1.3 billion in the first quarter. Despite that charge, GM said it “currently expects to report solid core operating performance in the first-quarter financial results.” The company will announce results for the first three months of the year on April 24.

Toyota, the world’s largest carmaker, in early April called back 6.4 million vehicles to sort out five different faults involving parts ranging from steering to seats. Germany’s Volkswagen in November 2013 got embroiled in one of the biggest recalls of its history, affecting 2.64 million vehicles suffering from issues with dual-clutch gearboxes, lighting and fuel pipes.

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