NEW YORK, April 25, 2016 /PRNewswire/ -- Stout Risius Ross, Inc. (SRR) has released results of its latest research into automotive recalls in the 2016 Automotive Warranty & Recall Report: Industry Insights for the Road Ahead. The report is a follow up to last year's groundbreaking 2015 report.
The report represents the industry's most comprehensive study of recall risks, trends and costs. It incorporates data from recalls, technical service bulletins, investigations, financial reporting, international campaigns and other sources.
"Last year's report [based on 2014 data] clearly pointed to an industry on the cusp of a new era of heightened recall activity," the report states in its introduction. "Our analysis of 2015 shows that the new era has arrived."
A major characteristic of this "new era" is the impact of software and wireless technology. According to SRR's analysis, software-related recalls have risen sharply in recent years: In 2011, under 5% of all recalls were software-related. By the end of 2015, the rate had risen to 15%.
"Today's cars can contain over 100 million lines of code. For perspective, an F-35 joint strike fighter jet contains about 9 million," said Neil Steinkamp, a managing director in SRR's automotive practice who has led the firm's research and analysis of automotive recalls. "When you have that much software in a car—and particularly when much of that software is relatively new—there are going to be some issues. The key question is: What can the industry do to mitigate risks as cars become more reliant on software?"
The report cites other new and emerging technology-related risks, such as those posed by hacking and the collection of private driver information as the industry moves toward internet-connected, autonomous vehicles.
The report also discusses how regulators are addressing these risks and are taking a significantly more proactive stance on recalls in general. For example, NHTSA has taken unprecedented actions including levying record-level civil penalties and using consent orders—an enforcement method used by the Department of Justice.
Other key findings of the report include financial implications for OEMs and suppliers, insights and strategies related to recall completion rates, and data-based predictions about recall volume and characteristics for 2016 and beyond.
The report is available free of charge at the SRR Automotive Warranty and Recall Report download page at www.SRR.com.
About Stout Risius Ross, Inc.
SRR is a global advisory firm specializing in Investment Banking, Valuation & Financial Opinions, and Dispute Advisory & Forensic Services. We serve a range of clients from Fortune 500 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. For more information, visit www.SRR.com, follow us on Twitter @StoutRisiusRoss, and/or connect with us on LinkedIn.
SOURCE Stout Risius Ross, Inc.