Auto, Product Recalls Increase

By Staff Writer May 26, 2023

Data from the first quarter of 2023 shows that the number of product recalls in the U.S. increased 14.2% from the previous quarter. According to Sedgwick brand protection’s latest U.S. product recall index report — which analyzes recall data from five key industries — this marks the highest single-quarter total in four years. Automotive recalls increased 3.4% to 245 events. Electrical systems were the leading cause with 48 events, followed by equipment with 46, and airbags with 17.

With three quarters in the year yet to be reported and regulatory and consumer scrutiny continuing to increase, there is still the possibility of a third consecutive year with over 1 billion recalled units.

As 2023 progresses, technology advancements and increased adoption of electric vehicles (EVs) will push regulators to move quickly to ensure that vehicles equipped with the latest features are safe for the road. Following in the footsteps of the European Union, businesses may also see a continued push from the Biden administration, regulators, and other legislators to adopt new standards for low to zero emissions vehicles. Manufacturers should be prepared for a slate of new regulations and guidance as regulators work to ensure vehicle safety.

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Last modified on Friday, 26 May 2023 01:35