agent Entrepreneur logo
MenuMENU
SearchSEARCH

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

August 24, 2026
Mechanic holding a vehicle diagnostic device while standing above an open car hood

One recall over electrical systems affected about 4.4 million units, according to the Sedgwick report.

Credit:

Pexels/Daniel Andraski

1 min to read


Automotive recall events fell to a six-year low in the first half of the year, but the number of units jumped to a five-year high.

The recalls, led by electrical systems on both event number and unit volume, totaled 431 covering about 23½ million units, Sedgwick reported, citing National Highway Traffic Safety Administration data.

Ad Loading...

The electrical system-caused recalls in the six-month period were pumped up by one event that affected about 4.4 million units.

Overall recalls fell about 7% year-over-year, but unit volume surged about 112%, according to Sedgwick’s report.

Backup camera systems continued to be a major source of recalls, ranking second by volume at three million affected units, Sedgwick reported.

The firm pointed out that increasingly common over-the-air updates that often require no visit to the shop may collide with the snail mail-based consumer notification system that’s been used for years. It pointed out that regulators and Congress have been discussing more electronic notices.

Another change that could result from the automatic vehicle updates is reduced auto dealership involvement in recall repairs, Sedgwick said.

Ad Loading...

Last year, about a quarter of new vehicles sold in the U.S. were eligible for OTA updates, according to the report.


 

Originally posted on F&I and Showroom

More Industry

Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
A fan of $100 bills sitting on a white envelope
Industryby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
newspaper advertisement circled in pink, Turn Listings into Leads, F&I and Showroom
Industryby Lauren LawrenceAugust 5, 2026

Structure Leads to Optimized Auto Listings

As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.

Read More →
Ad Loading...
Photo of woman counting cash with a calculator sitting on a desk in front of her
Industryby Hannah MitchellJuly 30, 2026

Consumers Mixed on Economy, Finances

A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.

Read More →
Ad Loading...