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The 4 Most Costly Auto Recalls Of All Time

Posted August 24, 2013 12:00 AM by CR4 Guest Author

As with any products, cars are subject to manufacturing defects and safety issues that don't always surface until they've been purchased by thousands of people, and sometimes those problems go undetected for many years. Until, that is, the day it's the front page of every newspaper and headline of every newscast. Following are some of the most notable and most costly automobile recalls in American history.

Explosive Pinto

The vastness of this recall, combined with the severity of the problem, makes it one of the most notable and costly recalls in history. In fact, it made such an impact, the name "Pinto" has become synonymous with "lemon" in the car industry. This recall affected year models 1971 through 1976. The recall was made official in 1978 as over 1 million cars were recalled. A rear-end collision could result in damage to the gas tank and cause an explosion. Although the solution to this problem turned out to be a part costing only $11 at the time, the volume of cars sold caused this to be a multi-million dollar recall plus settlement fees for injuries and deaths resulting from the unprotected gas tank. Unfortunately, many paid a higher price--their lives--when the cars caught fire prior to the recall.

Fast Toyotas

One of the largest recalls in recent history is that of Toyota. Models manufactured from 2004 to 2010, including the popular Camry and Avalon, were recalled after accidents received widespread publicity. In these accidents, drivers lost control of their vehicles after the accelerator pedal became stuck, leading to dangerous acceleration of the vehicle. As a result, at least one person died, many more were injured, and vehicles sustained major damage. The resulting recall affected 9 million Toyota and Lexus cars and SUVs. The repairs to the accelerator cost the company over $5 billion dollars, a price tag matched by no other auto recall in history.

Shifting Fords

The Ford Motor Company has been plagued by numerous recalls over the decades, many of moderate to high severity. In 1980, a problem was discovered that would lead to a vehicle going from a parked gear to reverse. The dangers of such a problem are obvious, and many people died or were injured due to the transmission flaw. A total of 21 million cars, trucks, and vans were recalled, every Ford model year 1976 to 1980. This recall cost Ford more than 10 times the amount paid to repair faulty Pintos just two years prior and makes this the most widespread auto recall in automotive history.

Ford Infernos

Ford made the news again in 1996 with a massive recall of almost 9 million vehicles. The cost of this recall topped $200 million dollars. When combined with the number of vehicles affected, this amount makes this a sizeable recall. And the problem itself had considerable consequences. The ignition switch in models covering a half decade (1988-1993) could spontaneously spark and catch fire even when the vehicle was not in use, making it particularly dangerous and unpredictable. The subsequent fires caused numerous injuries and widespread property damage prior to correction of the issue.

Recalls for problems range from small annoyances to major catastrophes are a constant part of the automobile industry, but the above mentioned have made their mark on history. May their impacts never be outdone.

Editor's Note: Auto blogger Tina Weir understands the importance of having quality car parts. She frequently writes about automotive issues and custom fabrication parts.

Image credit: MyBlogGuest.com

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#1

Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 9:14 AM

So 3 out of the 4 were Ford vehicles - not a very good omen for that manufacturer. Yet Ford was the one of "the big 3" that bucked the bankruptcy problems. Rather suggests that their management was/is a whole lot better than GM & Chrysler's.

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#2
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Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 3:17 PM

Fire Or Roasted Death.

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#12
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Re: The 4 Most Costly Auto Recalls Of All Time

08/26/2013 7:14 AM

I always heard "Found On Road Dead".

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#13
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Re: The 4 Most Costly Auto Recalls Of All Time

08/26/2013 2:53 PM

Fix Or Repair Daily.

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#3

Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 3:18 PM

I would disagree on the whole recall ranking thing to be honest.

According to internet searches this all plays out rather different than what was given here.

10 largest auto recalls in history.

Top 10 auto recalls.

5 biggest vehicle recalls.

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Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 7:20 PM

I agree. Any of these "N# of worst what ever" is always skewed by the perspective of the author. Don't get me wrong. I do not for one minute believe our blogger is malicious or has a hidden agenda. Similarly I do not believe the author did an exhaustive search of all automobile recalls since Carl Benz fabricated the first vehicle. Then there's also the nebulous attribute of "costly". Did the OP only consider the expense to execute the recall. Did this expense get prorated for inflation and exchange rates. What about the damage costs from failure incidents. Does non-tangible factors like prestige or image weigh into the cost. What about the EV1. Every one of these vehicles were recalled and taken even though customers wanted them back.

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#5
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Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 9:14 PM

And how costly was it to recall all 1,117 EV1s ever built compared to 2,700,000 Chryslers?

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Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 11:11 PM

A trivial cost if all one is concerned with is money. How does one put a dollar value on reputation? Has there ever been a movie made on how Chrysler PO their customers. Come to think of it, there was another movie around this time. I guess some companies don't care about reputations.

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Re: The 4 Most Costly Auto Recalls Of All Time

08/25/2013 9:55 PM

I really don't know where you stand on EVs, but the actual market share for EVs is so tiny that even pissing all of them off will not make a dent in the corporate bottom line.

While the technology is really cool, you really are addressing a fringe market and most of those people really don't have deep pockets.

Elon Musk's Tesla Motors is the correct approach. Make a product that is both high end and extraordinary and sell it to rich people.

The technology development gets paid off by the wealthy and eventually can be used for cars for the rest of us.

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Re: The 4 Most Costly Auto Recalls Of All Time

08/25/2013 11:35 PM

My point here is not the EV1 or electric vehicles in general. My point is that GM found and then pissed off all of their customers in this narrow niche market. That is not a cost that should be measured in dollars. Additionally unlike all of the other recalls this recall removed every vehicle of this model from the road. So it depends on how one chooses the criteria of cost how this or any failure could be measured.

Ironically I just saw a commercial for the Smart electric car. They point out an urban electric vehicle off road in the middle of the desert makes as much sense as an off roader in the city.

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Re: The 4 Most Costly Auto Recalls Of All Time

08/26/2013 7:00 AM

We have been through this discussion on the EV1 before.

GM recalling and destroying the EV1 is standard industry practice for prototypes and studies. Whirlpool has a similar program where select customers are used to try preproduction prototypes and experimental designs.

Customers are required to sign a legal waiver and may be allowed to buy the test product (usually a production replacement) at the end of the test at a reduced price.

The point is that these selected individuals know right from the start that the product may be pulled at the end of the test. Read what you sign. It's a liability thing.

So, they may be disappointed at GM's final decision, but it is not as if they were not informed of the possibilities.

Why shouldn't it be measured in dollars? It's the bottom line GM is after. Apart from measures of good will and charity, corporations exist to make a profit. I am sure that GM bean counters knew exactly what the impact would be.

1,117 EV1s versus over 14 million other vehicles sold those same three years by GM - Tell me which market segment you would be focusing on?

Incidentally, those numbers are just domestic vehicles sales.

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#8
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Re: The 4 Most Costly Auto Recalls Of All Time

08/25/2013 9:46 PM

Interesting

first 7 out of 10 are American Car companies

second 7 out of 10 are American Car companies

Third 3 out of 5 are American Car companies

I see a slight trend here .

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Re: The 4 Most Costly Auto Recalls Of All Time

08/26/2013 7:21 PM

I agree with tcmtech's comment. Surveys like this are too easily influence by personal biased.

I don't believe GM ever recalled any Chevy Vegas for fender rust-through - it wasn't a safety issue. If they had, that would probably have been equal to all the other recalls combined. There may not have been any safety-related recalls on the Vega because none lasted long enough for safety issues to be found.

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Re: The 4 Most Costly Auto Recalls Of All Time

08/24/2013 11:38 PM

What has always bewildered me from a lowly service techs point of view is how every manufacture of most anything has certain models they push the hell out of sales and advertising on yet by design they are junk and then some.

Yet they will have other models they never so much as say a word to the public about in advertizing that are tried and true reliable old work horses that never fail, never break down, and never get recalled for anything.

Why is that?

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