An investigation by Auto Data Systems (ADS) has identified “tunnel vision” and resistance in dealer workshops as the key factors behind failures to check nearly a third of recalled cars.
ADS found that 3.2 million recalled cars are yet to be rectified in the UK, with nearly a third of some recalled models never receiving crucial safety fixes.
The firm reported that the perceived inconvenience of recall checks has caused some workshops managers to pressure technicians to spend their time on retail work, which provides an immediate profit.
Like warranty claims, recall work often provides lower margins than retail work, however recall jobs can often be as simple as an inspection, or replacing one bolt.
Instances were found where a manufacturer only paid for 15 minutes of workshop time for a recall, when the actual task ended up taking up to 90 minutes.
However, ADS found that recall work can be helpful in regaining the business of previously lapsed customers, with the average additional spend of a lapsed customer being £309.
Jon Sheard (pictured), operations director at ADS, said: “Our consultations reveal several unspoken secrets underlying the figures on missed safety recalls, one of which is the sheer inconvenience to workshops of many such tasks when they are under pressure to increase more profitable retail work.
“Although it’s understandable that there is little enthusiasm for such appointments in the workshop the fact remains that recalls present a unique opportunity to reconnect with lapsed customers who are often going elsewhere for their servicing anyway.
“Workshop managers are naturally focused on the immediate job at hand but this represents tunnel vision when the additional revenue benefits of reconnecting with lapsed customers are clearly proven.”
ADS estimates that franchise dealers have failed to contact up to a third of customers driving recalled vehicles over the last few years, in the process missing out on more than £100m in annual revenue.
Later in the summer, ADS will publish recommendations to help dealers re-engage with lapsed customers.
