A recent report from Sedgwick reveals that product recalls in the U.S. are on track to reach their highest level in six years. The automotive sector, a major contributor to this trend, faces increasing scrutiny over safety and compliance, with recalls ranging from faulty airbags to battery-related risks in EVs.

Manufacturers are under pressure to address defects more proactively, as regulatory oversight intensifies and the average age of vehicles on the road continuing to increase.

This uptick in recalls underscores the importance of robust quality control and customer communication strategies to mitigate reputational damage and financial losses. Dealers and F&I managers must stay informed of recall trends to assist customers and maintain compliance. With the recall landscape evolving, the focus remains on building trust through timely and transparent responses, Sedgwick analysts said.

Read more at Sedgwick