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.