Workshop resistance and ‘tunnel vision’ exposed as root causes of Britain’s failing car safety recall system

Recall work is unpopular in service departments, but managers fail to appreciate the bigger picture, says ADS.

UK car safety recalls

RESISTANCE and ‘tunnel vision’ in dealer workshops are the key factors behind failure to rectify up to a third of cars recalled for a safety check.

That’s the finding of data experts ADS, who are conducting an industry-wide investigation into why a growing number recalled cars are never checked.

ADS (Auto Data Systems) has found that OEM reimbursement policies often fail to cover the time spent on recall checks.

Workshop managers say that recall-related work can also squeeze out opportunities for more immediately profitable work.

But there is also a ‘tunnel vision’ approach in many workshops, which means that they do not look beyond the immediate task to see wider revenue opportunities presented by reconnecting with lapsed customers.

Both factors combine to cost the franchise dealer sector millions in potential revenue, while also posing ongoing safety risks for drivers.

ADS warns that the problem is escalating, after revealing earlier this year that more than three million unrectified cars are on the road and that those numbers are rising.

In some cases the perceived inconvenience of recall checks to workshop staff has brought active resistance as managers under pressure push to focus on more immediately profitable retail work.

Its consultations across the industry have been key to understanding what ADS describes as a wider ‘systemic failure’ in customer engagement strategy.

The business argues that while it may be tempting to blame franchise dealers alone for an outstanding 3.2 million unrectified vehicles – with up to a third of cars missed in the case of some recalls – the reality is more subtle and complex.

For example, ADS has logged instances of apparently simple checks or modifications on some older cars taking up to 90 minutes when the manufacturer is only paying for 15 minutes of workshop time.

Such unpredictability means that workshops often face the dilemma of booking fewer retail customers in on any one day or finding the workshop under-booked.

Unlike warranty claims, which are also typically lower margin than retail servicing, a safety recall may involve little more than an inspection or replacing a single bolt, which may have rusted and seized up.

While workshop frustration is understandable, say ADS, the greater problem is that workshop managers often have ‘tunnel vision’ when they focus solely on the task at hand, rather than seeing the bigger customer retention picture.

Pointing out that the average additional spend by a lapsed customer initially re-contacted for a safety recall is £309, ADS stresses that the best approach for dealers is to encourage a bigger-picture attitude in workshop managers.

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 has estimated that in recent years franchise dealers have missed out on more than £100 million in annual revenue by failing to contact up to a third of customers driving recalled vehicles.

The business continues to consult on the pain points for dealers caused by losing track of customers due to poorly maintained databases. ADS will publish definitive recommendations later this summer, providing practical steps to help dealers re-engage lapsed customers and recover lost revenue.

Published Coverage

This industry wide issue has been highlighted in several leading industry publications:

Motor Trade News: Third of recalled cars never checked, ADS blames “tunnel vision”​

Carsite: Tunnel Vision in the Workshop: Why Recall Resistance Is Costing Dealers Millions

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