Pub. 14 2015-2016 Issue 3

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 4 , 2 0 1 5 4 new jersey auto retailer Chairman’s MESSAGE | BY LAWRENCE W. KULL Vehicle Recalls Are An Opportunity For Dealers To Shine Advances in automotive engineering and manufacturing have made Americanhighways safer andmotoringmore reliable. Still, it’s tempting to focus on the negative, whenmore than 70million vehicles have been recalled in the last two years. And it may be hard to wrap your head around just how safe today’s vehicles are when the media hammers away about high profile safety recalls, like those involving GM ignition switches and Takata airbags. These recalls are disappointing chapters in automotive manufacturing. They are power- ful reminders that legitimate safety concerns MUST be addressed. But let’s not lose sight of the big picture here. The sky is NOT falling. The reality simply does not square with the public perception that recalls are an indict- ment of the entire auto industry. Keep in mind that less than 6% of all recalls require grounding the vehicle. The remaining 94% are often insignificant defects that have NO appreciable impact on vehicle safety. The reality is that there hasn’t been a spike in vehiclemanufacturing defects. The dramatic increase in the number of high profile recalls is being driven by federal regulators operat- ing under a heightened sense of caution and manufacturers well-justified concerns about overzealous plaintiffs’ lawyers. Look at the facts…the National Highway Traffic & Safety Administration (NHTSA) reported32,675 traffic deaths in2014. Vehicle- related factors were the critical reason in only 2%of crashes. And that number is likely con- siderably lower.Many accidents are causedby tires that are damaged, over-worked, over-in- flated or, otherwise, improperly maintained. Remove tire-related causes from the total and crashes caused by vehicle defects are even lower than2%. In fact, drivers’ behavioral is- sues (drunk, drugged, distractedanddrowsy driving, speeding and failure to use safety features suchas seatbelts and child seats) are the cause of 94% of all traffic deaths. The auto industry has an extraordinary track record when it comes to vehicle safety. The industry has made tremendous strides in im- provingmanufacturing processes and vehicle safety, and the industry won’t rest until there are ZERO recalls and ZERO deaths attribut- able to motor vehicle defects. But, if recalls and highway safety are the problem, it should be clear by now that dealers are a critical part of the solution. The dealership franchise system brings im- measurable value to consumers and has a tremendous beneficial impact on highway safety. Our service departments are often the first to diagnose a potential problem that sets a safety recall inmotion. We have state- of-the-art equipment and our technicians are highly skilled and trained to repair any potential manufacturing defects and to get consumers safely back on the road. Customers expect warranty and recall repairs tobedone quicklyand correctlyusingoriginal equipment factory parts. When millions of vehicles are recalled, the extensive network of independent dealerships is in place to make needed repairs as soon as the manufacturer ships the parts and establishes the proper repair protocols. Ensuring that our customers are operating safe vehicles is our primary concern. And consumers benefit from the fact that new car dealers have a vested interest in identify- ing and fixing warranty and safety recalls, because we are paid by the manufacturers to fix their mistakes. Vehicle owners will often ignore recall notices if they think the repair is not critical. Dealers have an obvi- ous financial interest inmaking certain that consumers are aware of outstanding recalls and any repairs that are covered under the vehicle’s warranty. One of the most critical roles dealerships play for consumers is act- ing as an advocate when dealing with the manufacturer,making certain that consumers are treated fairly in connectionwithwarranty repairs or safety recall service. Dealerships play an important role as educa- tors, aswell. All of us, as retailers, have a duty tomake certainour customers are aware of all of their vehicle’s safety features and support efforts to create greater awareness about the behavioral issues that cause theoverwhelming majority of traffic deaths. There may be tens of millions of vehicles under recall, but that creates tens of millions of opportunities for franchised new car and truck dealers to demonstrate how the fran- chise system benefits consumers when they purchase a vehicle and long after they have driven off our lots.