Do periodic headlines about car recalls catch your eye? You’re not alone. Lately there’s been quite a bit of noise in the automobile world about the National Highway Traffic Safety Administration (NHTSA) of the U.S Department of Transportation.
In particular, the NHTSA asked the Chrysler Group to recall about 2.7 million Jeeps, which are considered to be dangerous due to gas tank-related issues. The NHTSA considers that Chrysler should recall Jeep Grand Cherokee produced between 1993 and 2004, and Jeep Liberty models produced during the 2002-2007 period, because these cars’ gas tanks (situated in the rear) could be exposed to leakage and subsequent fire in the case of a rear accident.
Photo Credit: Randall Chancellor
The NHTSA reported that in 2012 alone, automakers recalled almost 18 million vehicles, equipment and child seats. The agency has influenced the recalls of about 9 million of these vehicles, indicating that it’s worth it for investors to pay attention to.
Generally speaking, a carmaker may recall its products on its own initiative, or it can be imposed by a regulator; in the latter case, the company usually complies with the regulator, however Chrysler took another road, refusing to recall the cars and considering the possibility of taking the case to the court.
Aside from damaging an automaker’s brand loyalty within its own customer base, competitors might use recalls to undermine the company in question. In this way, by standing its ground, Chrysler demonstrates its confidence, which could establish a legal precedence in future occurances.
Even though 2.7 million cars is a big number, it is far behind some other major recalls in the history of the automotive industry. Companies like General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) have suffered from significant recalls, along with other players in this space.
Learn more about the ten largest car recalls in U.S. history:
No. 10: General Motors Company (NYSE:GM)
Photo Credit: Free Photo Fun
Year: 2004
Model(s): Cadilac Escalade, Chevrolet Avalanche, Chevrolete Silverado, GMC Sierra
Number of cars involved: 3.1 million
No. 9 Volkswagen
Photo Credit: Free Photo Fun
Year: 1972
Model(s): Volkswagen Beetle
Number of cars involved: 3.7 million
No. 8 Honda Motor Co Ltd (ADR) (NYSE:HMC)
Photo Credit: Vincent Pastore
Year: 1995
Model(s): Honda Accord, Honda Prelude, Honda Civic, Acura Legend, Acura NSX, Acura Integra
Number of cars involved: 3.7 million
No. 7 General Motors Company (NYSE:GM)
Photo Credit: That Hartford Guy
Year: 1973
Model(s): Buick Electra, Buick Estate Wagon, Buick Centurion, Buick LeSabre, Buick Riviera, Pontiac Bonneville, Pontiac Catalina, Pontiac Grand Ville, Oldsmobile 88, Oldsmobile 98, Chevrolet Bel Air, Chevrolet Impala, Chevrolet Caprice, Chevrolet Brookwood, Chevrolet Biscayne, Chevrolet Bel Air, Chevrolet Kingswood, Chevrolet Kingswood Estate, Chevrolet Townsman
Number of cars involved: 3.71 million
No. 6 Ford Motor Company (NYSE:F)
Photo Credit: Gangster Car Driver
Year: 1972
Model(s): Different Ford, Lincoln, and Mercury models
Number of cars involved: 4.07 million
No. 5 General Motors Company (NYSE:GM)
Photo Credit: dave_7
Year: 1981
Model(s): Chevrolet El Camino, Chevrolet Malibu, Chevrolet Monte Carlo, GMC Caballero, Pontiac Grand Prix, Pontiac LeMans, Buick Century, Buick Regal, Oldsmobile Cutlass
Number of cars involved: 5.82 million
No. 4 Toyota Motor Corporation (ADR) (NYSE:TM)
Photo Credit: Tino Rossini
Year: 2010
Model(s): Toyota Corolla, Toyota Corolla Matrix, Toyota Camry, Toyota Avalon, Toyota Highlander, Toyota Prius, Toyota RAV4, Toyota Tacoma, several Lexus models.
Number of cars involved: 6.67 million
No. 3 General Motors Company (NYSE:GM)
Photo Credit: Sicnag
Year: 1971
Model(s): Chevrolet Bel Air, Chevrolet Camaro, Chevrolet Caprice, Cheverolet Brookwood, Chevrolet Chevy II, Chevrolet G Series, Chevrolet Kingswood, Chevrolet Nova, Chevrolet Impala, Chevrolet P Series, Chevrolet C Series, Chevrolet Townsman, GMC C Series, GMC P Series, GMC G Series
Number of cars involved: 6.7 million
No. 2 Ford Motor Company (NYSE:F)
Photo Credit: Alden Jewell
Year: 1996
Model(s): Ford Bronco, Ford Crown Victoria, Ford Aerostar, Ford Escort, Ford Mustang, Ford Tempo, Ford Thunderbird, Ford F-Series, Lincoln Town Car, Mercury Grand Marquis, Mercury Cougar, Mercury Topaz
Number of cars involved: 7.9 million
No. 1 Ford Motor Company (NYSE:F)
Photo Credit: Bill Bradford
Year: 2009
Model(s): Mercury Mountaineer, Ford Ranger, Ford Excursion, Ford Explorer, Ford Windstar, Ford E150 – 450, Ford F-150 – 450
Number of cars involved: over 14 million.
