Understanding trends of car recalls

This research conducts an empirical study on car recalls in the US market. The research uses secondary data from recall websites maintained by public and private organizations. The objectives of the study are to investigate car recall trends and identify the causes and effects of recalls. Analysis shows that the majority of car recalls are initiated by a few car makers that are facing an increase in recalls and customer complaints. There exists a significant influence of customer complaints on car recalls. Furthermore, the latest car models seem to have less customer complaints compared to older models, and they also have less recalls compared to the older models. The research examines Toyota´s case of recent recalls and identified some immediate impacts of recalls on sales and on market share. This research can be further extended to identify key causes of car recalls and the impact on business performance.