Love him or hate him, Tesla’s Elon Musk is brilliant. As both a businessman and a marketer, he has created a loyal following of brand advocates – some of whom don’t even own the products he sells. There are consumers literally willing to wait years just to purchase a Tesla vehicle. He recently launched a car into orbit, which is now on its way to Mars -- the man continues to find ways to impress, or confound, depending on your perspective. The second anyone starts analyzing his inefficiencies and slow delivery, he debuts new products which re-excite everyone: the roadster and electric semi-trucks come to mind.

In addition to his mission to take cars consumer-direct, the one intriguing and very clever technology he incorporated into Tesla vehicles is over-the-air updates. Just like your computer, Tesla can update and fix/alter/improve its vehicles without the customer ever setting foot in a car dealership. And OEMs are following suit, with Hyundai’s recent announcement of over-the-air service integration into its vehicles by late 2019.

Electric vehicles are certainly a hot topic. Governments around the world are beginning to set deadlines for the total elimination of traditional fossil fuel powered automobiles.

Why should this worry dealers? With sales declining and dealerships anticipating the increased need for service revenue, the mass adoption of electric vehicles is concerning. First, electric vehicles have much less parts that will need “fixing,” and second, with over-the-air updates, consumers will have less need to visit the dealership, creating a conundrum for dealers.

in a recent Automotive News opinion article, industry thought leader Dale Pollak shared his feelings about dealers who are stuck in this “same-same” attitude. According to Pollak, dealers are still seeing lines of cars waiting for service daily and, while he used to see that as a positive, he now recognizes the practice as a sign of inefficiencies. Pollak shared how there are lots of opportunities dealers can focus on to increase service revenue opportunities, including improved scheduling, increased productivity, and more transparency in service pricing.

As electric vehicles increase market share and are increasingly adopted by consumers, there will be a decrease in service revenue. Yet, for some years, there will still be plenty of traditional cars on the road that increasingly need more service as they get older and out of warranty which, of course, increases customer-pay and recall opportunities.

I’d love to see a recall-free society with 100 percent compliance and perhaps over-the-air service updates will help increase the compliance rate. At the same time, we all want to see dealers continue to thrive both in sales and service revenue. Perhaps adopting some of Dale Pollack’s suggestions can increase retention today and into the future.

It’s only a matter of time before our industry adapts to the new landscape. Sales may decline or grow but as sales of electric vehicles increase, dealers will have less opportunities for continued service revenue. Take the steps now to find every opportunity to increase your current market share with existing (and new) customers so that it’s less of a burden on your bottom line as time goes on.

There is nothing more frustrating to a customer than being told a repair will take X amount of time - only to be informed later that it will take longer. To those who work in busy dealership service departments, this happens frequently. Customers come in for one thing and, during the multi-point inspection, additional issues are found. Or, as can sometimes be the case, a technician cannot quickly diagnose an issue.

How often have you had a customer arrive in the service drive saying something is wrong, but the technician cannot replicate it? It happens all the time. And it’s frustrating for both the customer and the dealership.  

OEMS have adopted technology in today’s vehicles at an incredible rate. And, most technicians simply don’t have the training to repair some of the problems that arise from this new technology. Most technicians weren’t trained to be electrical engineers or to approach vehicles more as computers than as purely mechanical machines. While technicians are adept with tools, wrenches and manuals, sometimes they need to communicate with expert manufacturer technicians to properly diagnose and fix a problem. That can take hours, effectively tying up a bay that could otherwise be productive.

Well, help is on the way. According to a recent article in Automotive News, two manufacturers are exploring ways to speed up the process, free up service bays and get customer vehicles back on the road faster.

Both Audi and Porsche are experimenting with new technologies which will allow instant communication between dealership technicians and expert manufacturer technicians. Audi plans to utilize mobile robots equipped with microphones and television screens enabling expert manufacturer techs to see, hear and interact with dealership techs in real-time. They can, in effect, look at the vehicle together and work in partnership to efficiently address the problem. In this case, the OEM technician no longer needs to rely on the dealership technician to explain the problem.

Porsche, on the other hand, has chosen the augmented reality route and is providing technicians with AR (augmented reality) glasses. This enables the same experience as Audi. But, in addition, also allows for overlaying specs and diagrams for the technicians while working on the vehicle.

The great thing about this instantaneous collaboration between OEMs and dealership technicians is that problems will be diagnosed and repaired faster, enabling the service department to run smoothly, more efficiently and at capacity.

Furthermore, I hope that this new technology enables expert manufacturer technicians to instantly alert a dealership technician about an open recall – perhaps even before a TSB or recall is widely disseminated to dealerships. This would reduce the time needed to repair that recall and increase overall compliance – which is a huge problem.

As vehicle manufacturers increasingly adopt and integrate more high-tech components into today’s vehicles, there is no doubt that dealership technicians will need assistance. These innovative solutions from Audi and Porsche should assist service departments in diagnosing, and repairing the problem at hand, as well as identifying that new recall or TSB a technician or service advisor isn’t yet aware of.

I certainly hope other manufacturers test and implement solutions that free up technicians and bays while, at the same time, ensure that any and all recall repairs are completed to keep consumer vehicles safe to operate.

These innovations are a win-win when it comes to dealership shop revenue capabilities and customer service satisfaction. As technology continues to develop – which it is at an incredible rate – both dealers and manufacturers should be taking advantage of it. That’s the simplest route to a bright future filled with happy customers, busy technicians and efficient shop capacity.  

Life at a dealership is hectic. There are so many pieces moving simultaneously that it can seem as if you’re living in a real-life version of the classic video game “Frogger,” continuously ducking, dodging and weaving your way through the dealership -- just as everyone else is. Combine sales, service and customer activity, and that brings the risk to personal safety to a whole new level. And, sometimes, when in a hurry, things happen.

Take, for example, this dealership in Texas which Auto News reports is facing a wrongful death lawsuit because a salesperson backed up a car on the lot too fast and ran over a service customer. That split-second of “in a hurry” can translate into millions of dollars in liability.

There are also several recent examples of salespeople held hostage, or carjacked, on test drives. These are all examples of things that could have been avoided if the dealership protected its staff and customers by creating and enforcing safety precautions.

OSHA (the Occupational Safety and Hazard Administration) has strict guidelines, especially in the service department, that dealers and employees must follow. Workers who interact with caustic or otherwise dangerous material sit through training and acknowledge that they understand the risks, procedures and will take adequate cautions when dealing with these items.

Most dealerships have designated test-drive routes, collect photocopies of customer’s driver’s licenses and have other precautionary measures prior to a test drive. But, sometimes, things get busy and process steps get overlooked. Perhaps you can get that copy of the driver’s license after the test drive?

Life can be hectic in the service department-- plenty of accidents happen which leave employees injured, or worse. Whether that’s because the vehicle was placed incorrectly on the lift, a power tool was not used safely, or chemicals were incorrectly handled, these are all things no dealership wants to happen, but sadly they do. Sometimes people, naturally, are in such a hurry that critical pieces of the process get skipped, or shortcuts are taken.

Just as in any workplace, it’s the dealership’s responsibility to ensure safety precautions are put into place and enforced, not only for insurance requirements but, more importantly, for employee and customer safety. That’s why you see yellow tent signs on floors that read “Wet Floor” and that’s why McDonald’s coffee cups say “Danger! Liquid is hot!” Yes, it all may seem common sense but, in the end, the dealership is the one that could be liable when something goes awry.

You may want to consider sending someone to train to be a “Safety Officer” in your dealership. OSHA requires that all businesses have someone designated as such. But, knowing employee turnover, how many of them are trained properly? How many truly analyze processes, watch behavior and correct any mistakes which are against safety precautions?

Yes, it’s another thing to think about and concern yourself with. However, in the end, I’m pretty sure no dealership wants to be the one that not only has a dead or injured customer on their hands, and the media attention that goes along with it – to say nothing of the big check that will eventually need to be written.

January 1 saw the enactment of Tennessee House Bill 141, to the collective groan of consumers. In a nutshell, this new law prevents consumers from suing car dealers if they purchase a used vehicle with an open safety recall, as long as it was disclosed, and the customer signed off on that disclosure.

For many dealerships the law doesn’t appear to be a dramatic shift from what already takes place. So, what is different about it, causing it to draw the rage of consumer protection groups and organizations, fearing Tennessee will become the nation’s dumping ground for recalled vehicles?

While every other state in the nation has consumer protection laws that require recall safety disclosures upon the sale of an affected vehicle, Tennessee is the first state that will indemnify a dealer post-sale, IF, at the time of purchase, the consumer was notified of the existing safety recall.

While other states have tried to pass similar laws, all have failed ---- until now.

Lobbyists for the automotive industry are celebrating the law’s passage. However, in my opinion, there’s not much to cheer about. Let me explain: Certainly, as a car dealer, avoiding liability through the legal and democratic process is, understandably, a reason to cheer -- that I understand. Nobody wants to get sued. However, this bill was passed at the eleventh hour and attached to other legislation. As a result, consumer reaction so far is to feel tricked and slighted by state legislators, the automotive industry and lobbyists.

Sadly, this type of action just reinforces the old stereotype that car dealers can’t be trusted. There is also concern that dealers in the other 49 states will begin dumping used vehicles they can’t fix or resell to the state of Tennessee, because it’s now easier to sell them there without worry.

Personally, I don’t believe this legislation will stand. Based on reactions from the citizens of Tennessee, my bet is that politicians will quickly repeal this legislation and claim they are “listening” to their constituents. Once that occurs, the only ones left looking like “bad guys” will be car dealerships, since this legislation was originally pushed through by the dealer association.

Perhaps there is a middle ground?

What if the legislation went a little further than simply notifying consumers? What if it added that the dealer would provide a full report about all existing recalls along with instructions on where to go for the necessary repairs?

If we took this extra step and notified consumers about any open safety recalls AND also provided instructions and guidance on how to get those repairs completed, it would be difficult for a consumer to then come back and sue the dealer.

Adding this dimension to legislation is just a common-sense measure. It would illustrate that dealers are doing everything in their power to instruct the customer; and that the customer is aware. It would be difficult for a consumer who did NOT follow the instructions to then argue that they should be able to sue the dealer.

Consumer perception is a huge problem for dealers. This type of legislation only further feeds into that negative image dealerships and manufacturers have been working hard to overcome. Instead of introducing legislation that seemingly only protects dealers, why not find a middle ground where everyone wins?

Manufacturers hold dealerships accountable for customer satisfaction and the overall experience in both sales and service through surveys. Dealerships that fall behind the acceptable OEM standards can easily suffer consequences that reduce revenue and marketing exposure. And OEMs are increasingly tightening down on these expectations. Why? Because they value brand loyalty and retention. If a customer consistently has a poor experience with their vehicle, local dealership, or both, it is that much easier for a competing brand to conquest that customer, causing loss of market share.

It is an industry-wide problem as we all know that many customers fail to complete those OEM surveys. And, just like online reviews, the customers that do complete them are typically on opposite ends of the spectrum – they either love the dealership or they hate it. Most consumers in the middle simply delete the email or throw away the physical survey, never bothering to fill it out.

On top of that, taking your vehicle in for service does not rate at the top of many people’s list as the most fun thing to do. They simply don’t have the time to do it so it’s already an inconvenience for them, but they still do it because they want their vehicle operating safely and efficiently.

Well, here is where the importance of a great customer experience on every single visit comes into play. But, there is one area that trips up many dealerships and contributes to those poor CSI surveys.

Imagine this scenario: The customer brings their vehicle in for regular maintenance or to get a problem fixed. The problem gets fixed perfectly and the customer experience is spectacular. The customer is very happy --- until they get home, open their mail and find a recall notice on the same vehicle they just brought into the dealership. Why did the dealership not inform them and fix it during their visit? That scenario plays out every day in dealerships across America.

Now, they realize they must again find time in their busy schedule to RETURN To the dealership to get the recall repair completed. Not only does a return visit draw the customer’s frustration, but it also causes them to question whether the dealership can be trusted with assuring vehicle safety. It’s one of the primary reasons why consumers go to dealerships for repairs rather than independent repair shops. Once you’ve lost a customer’s trust, it’s not hard for them to defect from your dealership. These customers are also likely to give a bad survey result, spread the word on social media, advise others to avoid your dealership, go on Yelp to hammer your ratings, and perhaps will never again return.

Customers rely on your dealership’s knowledge and expertise to ensure their vehicle is maintained properly. Missing something as important as a safety recall during the check-in process or MPI, simply due to a failure to check, lack of resources, or some other reason, is a failure on the dealership’s part. In the customer’s eyes you are not keeping your promise of keeping their vehicle correctly serviced and safe for them to drive on the road.

Even if you don’t have available parts or shop capacity at the time of their visit to fix the safety recall, simply informing them that the circumstances exist, explaining why it cannot be fixed during their visit and that the dealership will schedule the repair as soon as the parts are available, will go far to diffuse their frustration and make for a happier customer.

Sure, they’ll be inconvenienced. However, as long as the dealership staff handles the situation with good communication, are transparent, knowledgeable and can advise the customer, chances are great that the customer will forgive and understand. And that will go a long way towards retention, customer experience and satisfaction.

The auto industry is hyper-competitive. Consumers have countless choices for buying and servicing their vehicles; from competing franchise dealerships to independent service centers. It is thus important to do the best to not only keep your customers happy, but also to continuously improve the customer experience to earn loyalty, referral business through word-of-mouth and online reviews, and to increase retention.

Listening to customer feedback, then using that to make changes and improve your dealership’s customer experience is not a new strategy. Customers complain all the time – sometimes the complaints are small, sometimes big and sometimes erroneous. Most managers do their best to rectify situations and satisfy customers – as they should. But there is more work to be done to raise customer satisfaction.

Well, a hidden source full of feedback exists which can be used to improve your customer experience and, perhaps, even to conquest customers from competitors. What is this treasure chest?

How about your competitor’s online reviews?

Think about it. Why are consumers in your PMA going to your competition rather than to you? What is the dealership doing right? What are they doing wrong? Online reviews give insight into what you need to know about your own customer experience and how to provide a more favorable alternative to your competitor.

These reviews can help you figure out what your competition is doing to frustrate their customers. Here’s your opportunity to craft a customer experience that appeals to your existing customers, while, at the same time, attracts your competitor’s customers.

Are your competitor’s customers complaining about long wait times for vehicle service or lack of communication? There’s an opportunity for you. Make sure that you don’t have long wait times in service by incorporating technology to communicate with customers and keep them up-to-date on the status of their vehicle. Then market the heck out of that! Do you think some of your competitor’s disgruntled and unhappy customers might notice and give you a shot? Why wouldn’t they?

Analyze all your competitors’ customer service issues and do what you can to fix those at your own dealership (if they exist), or market that your dealership doesn’t have these issues.

Don’t misunderstand me; I’m not advocating that you start sending out messages, “We’re better than Joe’s Ford.” It’s never a good idea to bad mouth your competitor. I’m only suggesting that, if you see pain points in your competitor’s processes, ensure that your dealership does NOT have these same pain points (or fix them). Then use those as unique selling propositions. In addition, ensure these same points are used to leverage and attract those unhappy customers.

This strategy can improve everything about your own store by forcing you to analyze what is working in your own dealership and what is not. It also provides the opportunity to ensure that your competitor’s pain points shape a different experience at your dealership. You’re looking for every opportunity to differentiate yourself in the marketplace, right?

This focus on happy customers opens the door to conquest other customers when they see your message and consider a move to your dealership.

Knowing what pain points exist in your market – whether that feedback is about your dealership or about your competition – is invaluable knowledge you can leverage to your advantage.

While the struggle to decrease unrepaired recall vehicles on the road continues, new business models and technologies are arriving which could dramatically reduce the problem. Foremost among them are the advancements in autonomous cars, the introduction of subscription services, and over-the-air capabilities.

How will each of these developments play a role in decreasing unrepaired recalls? Let’s examine this:

Over-the-Air Technology:
This technology already exists and is in use by automaker Tesla. Through over-the-air technology Tesla makes vehicle updates without an owner ever having to visit a service center. From software updates to adjusting suspension, Tesla quickly responds to complaints and, in the event of a recall, in most cases doesn’t need to notify the driver but simply uploads the software update directly to the vehicle.

Of course, there will be times where hardware is affected that requires physical repair. But Tesla isn’t concerned about tracking down its owners as it can simply push notifications out directly to the vehicle’s large computer screen. If Tesla really wanted to, it could probably even disable a vehicle until a recall is repaired by the owner. Tesla is highly protective of its vehicles and its reputation and, more likely than not, will take steps to ensure the safety of any of its vehicles on the road.

While this technology hasn’t yet been adopted by major automakers, the pressure to reduce unrepaired recall vehicles will likely lead to mass adoption -- considering many automakers already have wi-fi and other communication abilities (like OnStar) which could be used.

Subscription Services:
The current move by automakers and some dealers to offer subscription-based consumer models may also reduce unrepaired recalls. Unlike leasing a vehicle, consumers who subscribe to these services never really own it. Ownership is either held by the dealership, or the manufacturer, depending on which path a consumer takes.

Because these vehicles are rotated by consumers, when, for example, a subscriber wants to swap from a sedan to a SUV, or newer model, the dealership or manufacturer has the chance to repair any recalls before allowing a different subscriber to take it. In addition, dealers and manufacturers have a financial interest in each vehicle, since it’s an owned asset. I wouldn’t be surprised if, in addition to regular maintenance, recall repairs become mandatory for subscription service owners. Neither a dealership nor a manufacturer will want to risk devaluation or the loss of any subscription vehicles in their fleet.

Autonomous Vehicles:
While mass adoption of autonomous vehicles is arguably 10-30 years away, vehicle service and/or recall repairs could easily be accomplished without the need for an owner (or subscriber) to do anything, as these vehicles can drive themselves.

Any vehicle in need of repair could go to the dealership for service, while a different autonomous vehicle takes its place for the consumer, providing an efficient way for the consumer to have transportation without the inconvenience of waiting at a dealership.

Autonomous vehicles will also have decision-making abilities by default. These vehicles will know when dangers exist in the exterior world, identify these dangers and take steps to get any needed repair. Combine this with over-the-air capabilities and we may find a world in which recalls, repairs and maintenance are performed without a consumer’s intervention.

While two out of three of these technologies exist right now, there’s no clear understanding how each will affect the level of unrepaired recalls. Consumers are currently skeptical of autonomous vehicles, so it may be some time before the entire picture develops. However, chances are good that, as time passes, sentiment will change. Autonomous technologies could translate into a huge spike in service revenue as dealerships must no longer chase down owners to complete repairs.

Only time will tell how advancements in the auto industry make recall notification and service a thing of the past. I’d love to see unrepaired recalls vanish, both for the safety of those driving affected vehicles, and those sharing the road with them. Until then, our industry needs to remain dedicated to the effort and work past the obstacles we face.

It’s always frustrating to read articles about the challenges legislators, manufacturers and states have with low recall compliance rates. And, even worse than the challenges is the finger-pointing going on, the lack of cooperation and the unwillingness to invest in what is a major public safety issue.

A recent article in Automotive News illustrates this perfectly.

The article describes a rather broken system filled with organizations who perhaps do not feel this is “their problem.” The NHTSA is hounding manufacturers to increase recall repair compliance rates, but manufacturers cannot do it alone as their information is typically limited to the original purchaser, and, if the vehicle was sold as a certified per-owned vehicle, perhaps a second owner.

To reach those second, third and older generation owners, manufacturers need help getting recent owner information, so they can be contacted. One of the easiest and most accurate sources available is vehicle registration records at the state level. The problem is that these states either provide incomplete information (if any at all); or say they cannot help due to a lack of technology, funding and manpower.

Currently, recall repair compliance levels are rather poor -- only 70 percent of recalled vehicles are getting fixed. And, as vehicles get older, that number drops to 44 percent (5 to 10-year-old vehicles); and as low as 15 percent for vehicles 10 years or older. The statistics fall to even more dismal levels when you also include those vehicles with recalls that are considered by the OEM as “voluntary.”

Outside the US, some countries have better success gaining compliance from consumers (Japan 80%, Germany 100% and the UK-92%.) Why are these countries so great at getting consumers to fix open recalls while a workable solution evades the United States market?

It turns out that the solution to the recall crisis is rather obvious for the international market. The simple fact is that these countries don’t let consumers drive cars with open recalls. A consumer cannot even register their vehicle until any open recall is repaired. So, why doesn’t the U.S. follow the lead of what is obviously working in other countries?

Part of the reason is that the federal government doesn’t have the legal authority to enforce compliance. States are the gatekeepers of information and control their own vehicle registration processes without federal oversight. There is also the anticipated consumer backlash should a state try to mandate this.

But would it work? Yes, and here’s how I know: It’s been done.

The State of California, in collaboration with the Environmental Protection Agency (EPA), implemented a joint initiative whereby vehicles in the state of California could not be registered with any outstanding vehicle-emission related recalls.

The result? Vehicle emission related recall repair compliance in California is at 90 percent! The program is proof positive that collaboration and cooperation works. And this initiative was designed solely to preserve and improve the AIR QUALITY in California. Imagine what a similar initiative for safety-related recalls could accomplish. I’ll tell you: It could save lives!

California has proven that this system can work, produce results and, to the best of my knowledge, hasn’t caused the consumer backlash that agencies predicted.

As industry experts forecast slumping sales numbers, a recent article in Automotive News suggests that shops can pick up the slack by getting back to customer-pay work. I cringed when I first read that, fearing that dealers would take this advice and backpedal on their commitment to assist customers with recall repairs. It would be tricky to handle all recall work, while putting a primary focus on customer-pay revenue, without leveraging recall customers for some of that work.

However, my fear was somewhat overcome with a totally separate article I came across right afterwards. It suggests that dealers should handle recall customers delicately, while still ramping up their customer-pay repair orders. How, you may ask?

With Sunday service.

Why is this such a slam dunk solution? Well, according to the article, one dealership has found great success with Sunday service hours, handling about 55 repair orders on a typical Sunday from 10am to 4pm. 80 percent of which are maintenance jobs, including quick service. In other words, ALL CUSTOMER-PAY! This immediately increases customer-pay revenue, and it does so without tempting anyone into alienating recall customers. It’s exactly like having your cake and eating it too.

I still contend that recall customers are a profit center in the making if handled properly. These are customers who will show gratitude and future loyalty -- if treated right. However, I do also understand a dealership’s need to increase revenue in service through lucrative services and customer-pay repair orders.

These two thoughts (getting back to customer-pay and Sunday service) weren’t in the same article. But perhaps they should be. It just seems like a no-brainer. Sure, there are going to be dealerships that can’t use this due to blue laws, or union restrictions. But those that do will probably find that Sunday service is also a great way to grow their customer base. Having more convenient hours for consumers could bring back in those customers visiting independents because it is more convenient, as well as new customers who prefer Sunday service.

This win-win-win solution could increase revenue in the customer-pay category, all while increasing business through more convenient hours for customers. Your dealership can continue to nurture relationships with customers in all areas – including recall repairs. And those are all great things for a dealership.

Recall Masters’ Christopher Miller warns auto dealers they could be easy targets for aggressive plaintiffs’ lawyers; offers advice to keep them safe 

Aliso Viejo, CA, December 5, 2017— Recall Masters, Inc., the leading provider of automotive recall news, data, training, and communications, today announced that it recently helped a large dealership client quickly fend-off a lawsuit related to recall communications.   

The plaintiff alleged that she received text messages sent by Recall Masters on the dealership’s behalf that were not in compliance with the Telephone Consumer Protection Act (“TCPA”). Recall Masters provided information to the plaintiff’s attorney about the extensive preventative compliance audits and painstaking steps taken to conform with TCPA guidelines, which lead to the plaintiff promptly dismissing the case.  

According to Recall Masters’ President, Christopher Miller, while this lawsuit was quickly handled by showing the plaintiff that no laws were broken, the industry will remain under scrutiny and dealers should take compliance matters seriously. “In recent years, many manufacturers, dealers, and their solutions partners, have become the target of criticism and litigation related to text messaging/TCPA violations, deceptive advertising, and fraudulent claims,” explained Miller. “Attorneys representing plaintiffs claim that dealers are recklessly sending marketing calls and texts without proper consent under the Telephone Consumer Protection Act. On top of that, dealers continue to use aggressive, fear-inducing messaging attempting to coerce consumers into visiting their dealership. Upholding the highest ethical standard in our messaging and steadfast compliance with all laws has been and remains a number one priority for Recall Masters. And, in this case, those compliance efforts paid off for both Recall Masters and its client,” Miller added. 

Recall Masters helps dealerships send consumers recall notices through multiple channels including postal mail, text messaging, emails, social media and phone calls, and goes to great lengths to comply with the TCPA, reasonable interpretations of FCC orders related to it, and various federal and state laws. Because of its heavy investment in compliance, Recall Masters was able to help its client inform the plaintiff on its efforts, leading to a reasonable dismissal without prejudice.   

Recall Masters supported its client by providing documentation related to its compliance efforts. It also provided information about the TCPA’s exemption for calls and texts communicating information affecting the health and safety of consumers, which would reasonably include recall notifications. Recall Masters also demonstrated how it uses, out of an abundance of caution, a manual system to deliver its text messages with live agents personally interacting with every consumer scheduling recall repairs. 

The National Highway Traffic Safety Administration (“NHTSA”) states that in 2016 there were over 900 recalls affecting 53 million vehicles. Over 25 percent of the vehicles on the road in the United States are operating with an unrepaired safety recall. “Millions of people every day are riding in or driving next to a vehicle with a potentially serious defect at a significant cost to public and personal safety. Although manufacturers are required to notify consumers of defects, dealers are often in a better position to engage with consumers, but lack the knowledge and resources to send recall notices on their own,” said Miller. 

According to recent reports, more than half of Americans have ditched landlines and only use cell phone communications. Statistics also show that text messages have a 99 percent open rate and 95 percent of those text messages are read within 3 minutes of being sent, according to Forbes. The data clearly supports just how effective text messaging is as a communication channel. What’s more, in a September 2017 survey of consumer attitudes conducted by Recall Masters, 25.3 percent of respondents stated they would like to receive information about a recall on their vehicle “by any means necessary.”  And 8.9 percent stated that “text alone” should be the sole channel of communication. However, the standard means of communication for many manufacturers are phone and mail.   

“Consumers are often unaware that they are driving unsafe cars and multi-channel outreach is critical to getting that safety information into their hands. Such informational messages may alert the consumer to the fact they have an open recall and either provide additional information about the recall, or instructions to contact the dealership’s recall department for information and to set up service,” said Miller. “In the search for increased recall completion rates, we can’t ignore how consumers want to receive these notices. Consumer habits and preferences have changed. How important are potentially life-threatening recalls to an individual’s safety? Considering that the national average for car ownership is almost one per person, and that Americans logged 3.22 trillion miles on the road in 2016, I’d say that recalls affect a pretty big chunk of the population,” Miller added.  

The recent lawsuit isn’t Recall Masters’ first time helping its clients overcome TCPA concerns. In recent years, Recall Masters has aided about half a dozen clients successfully in responding to compliance-related complaints.  

“We believe that effective communication can save lives and dealers need to be better educated about how to correctly do this,” Miller stated. “The bottom line is that the current recall epidemic, which is set to continue for the next decade or longer, will lead to more dangerous driving conditions if modern, more effective, solutions are not employed. Legislators are ‘up in arms’ about low recall completion rates, but have little understanding of what to do. And far too frequently consumers don’t even know the recall exists. A multi-communications strategy that also employs texting will absolutely increase recall repair rates, if used correctly,” Miller stated. 

To learn more about Recall Masters complete beginning-to-end solution, schedule a demo or receive a free trial call: 888-651-4480; email info@recallmasters.com; or visit: http://www.recallmasters.com. 

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About Recall Masters: 

Recall Masters is the leading provider of automotive recall news, data, training, and communications. The company is dedicated to helping automakers and their dealers expedite the repair of recalled vehicles and make the roadways safer for everyone. Greater recall awareness and proactive management helps automakers protect their brand and build trusting relationships between automotive dealers, rental car agencies, auto auctions and consumers alike. Recall Masters is privately held and based in the Aliso Viejo, CA. www.recallmasters.com. 

Media Contact 

Sara Callahan 

Carter West Public Relations 

carterwestpr@gmail.com 

727-288-2159 

Sean Reyes 

CMO, Recall Masters 

sean@recallmasters.com 

949.246.6023