Stout's 2017 Automotive Warranty & Recall Report Details the Changing Dynamics Between Suppliers and OEMs

CHICAGO, Sept. 11, 2017 /PRNewswire/ -- Stout today released results of its latest research into automotive recalls in the 2017 Automotive Warranty & Recall Report: Fault Lines – The Changing Relationship Between OEMs and Suppliers.

Stout's third-annual report is the industry's most comprehensive analysis of automotive recall trends. The report greatly expands on our previous two reports, with an unprecedented examination of defect-related domestic and international data that can influence the way original equipment manufacturers (OEMs) and suppliers prepare for recalls.

In addition to a comprehensive review of recall trends in 2016, the report provides enhanced industry analysis of completion rates, observations on defects and risks associated with the latest safety technologies, and insights on risk factors and benchmarking pertaining to supplier cost recovery.

"For suppliers, risks are rising with the volume and scope of recalls around the world, particularly given greater supplier-OEM collaboration on design and manufacturing and the increased use of global platforms to build efficiency," the report states.

Findings from our research include:

• Total light vehicle automobile recall units topped 50 million in 2016, the third consecutive year of elevated volumes

• Technology-related recalls reached all-time highs for the fifth consecutive year for both number of campaigns and vehicles affected  

• Recall completions have improved for five years in a row, with a recent median rate of 85%; OEMs tend to have the best recall response rates in the first 150 days of a campaign

• Liabilities appear to be increasingly passed on to suppliers, as OEMs improve their cost recovery efforts

To see our full analysis, download the report free of charge.

Stout's Automotive Expertise
Stout is recognized internationally as a leading advisory firm in the automotive sector. Our experts have advised companies ranging from multinational, publicly traded OEMs and Tier 1 suppliers to closely held component suppliers around the world. We have also worked with franchised and independent dealerships, raw material suppliers, logistics and data providers, and other stakeholders and participants in the automotive supply chain.

About Stout
Stout is a leading independent advisory firm specializing in Investment Banking, Valuation Advisory, Dispute Consulting, and Management Consulting. We serve a range of clients, from Fortune 100 corporations to privately held companies in numerous industries around the world. Our clients and their advisors rely on our premier expertise, deep industry knowledge, and unparalleled responsiveness on complex financial matters. To learn more, visit www.stoutadvisory.com.

Stout is a trade name for Stout Risius Ross, LLC, and Stout Risius Ross Advisors, LLC, a FINRA registered broker-dealer and SIPC member firm.

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