auto dealer in black and red logo
MenuMENU
SearchSEARCH

Recalled Autos Spike in Q1

The volume of affected units continued to rise as more software-focused models present different types of problems, creating complex risk, Sedgwick reports.

May 22, 2026
Electric Vehicle Battery

Electric-vehicle batteries, which can present more risk, are among the increasing number of units recalled due to electrical issues.

Credit:

Pexels — Ayyeee Ayyeee

2 min to read


Though the number of automotive recalls in the first quarter was at its lowest level in more than two years, the number of affected units reached the highest level in the same period.

More than 200 recalls, or about a 17% drop from the fourth quarter, affected 12.2 million units, the second-highest quarterly total in five years, Sedgwick reported. That volume was up 72% from the fourth quarter.

Electrical issues led all causes by both number of recalls and unit volume, resulting in 38 recalls affecting 5.3 million units, though the bulk were concentrated in one recall of 4.4 million units, Sedgwick said. Still, that was the highest quarterly unit volume for the category in 10 years.

While equipment problems comprised the second-leading recall cause at 31 events, back-over prevention systems took that spot by unit volume, taking in about 2.5 million units.

Back-over prevention systems and visibility issues tied for third on the number of recalls at 12 each, visibility causes leading to the third-highest recalled unit volume at just over a million units.

The concentration of recalls among fewer and larger events “matters because it simultaneously compresses dealer capacity, parts availability, and owner outreach and extends the exposure window between defect identification and verified remedy completion,” said George Wray of Borden Ladner Gervais in Sedgwick’s report.

Wray said increasingly software-focused vehicles are leading to problems involving integration, validation and execution more often than isolated component flaws. The shift includes greater volume of issues with electric-vehicle batteries, which can present more risk.

“As recalls become larger, more software-driven, and more operationally complex, manufacturers’ preparation for these risks increasingly determines both the safety outcome and the severity of downstream loss,” he said.

A DIFFERENT STORY: Auto Recalls Sank Last Year


Topics:Industry

More Industry

Red Honda Civic hybrid sedan on two lane road with green hills in background
Industryby Hannah MitchellAugust 21, 2026

August Auto Sales a Mixed Bag

An early forecast shows strong business despite consumer hurdles, and hybrids are a big piece of their affordability coping strategy.

Read More →
Six men standing in front of a Ford dealership.
Industryby Hannah MitchellAugust 14, 2026

Longtime Ford Store Changes Hands

The Virginia dealership joins a small area automotive group in a one-dealership transaction, moving from one family franchisee to another.

Read More →
car in background with hand giving a thumbs up in front
Industryby Lauren LawrenceAugust 14, 2026

Auto Loan Delinquency Rates Stabilize

Auto loans are a main driver of nonmortgage consumer debt, but delinquency rates stabilized in the second quarter across all credit risk tiers.

Read More →
Ad Loading...
Arm of mechanice reaching for car with hood open
Industryby StaffAugust 13, 2026

ASE Seeks Accurate Technician Pay, Benefits Data

New free membership trial removes cost barrier for dealerships and shops willing to contribute anonymous information to the industry data exchange.

Read More →
Photo of Dodge Durango moving down a road in sunlight
Industryby Hannah MitchellAugust 7, 2026

No Longer Worth the Price?

Mass-market auto brands are gaining ground on luxury competitors with what used to be premium features, helped along by the pressure of high vehicle prices dogging budget-conscious shoppers.

Read More →
Auto Dealer Today, Dealer Debrief, 08/06/2026, with Lauren Lawrence
Industryby Lauren LawrenceAugust 6, 2026

Dealer Debrief: Colorful Cars & BMW Backlash

In this week's debrief, host Lauren Lawrence discusses the first Slate vehicles and the BMW x Spider-Man collab that has sparked some privacy concerns.

Read More →
Ad Loading...
Headlight of silver Porsche car
Industryby Hannah MitchellJuly 31, 2026

Georgia Auto Group to Be Sold

Major U.S. player Group 1 signed an agreement to purchase the Atlanta-area stores across multiple brands from a longtime market leader.

Read More →
Auto Dealer Today, Dealer Debrief, 07/29/2026, with Lauren Lawrence
Industryby Lauren LawrenceJuly 29, 2026

Dealer Debrief: Four-Figure Loan Payments

In this week's debrief, host Lauren Lawrence discusses the rise in $1,000-plus loan payments and the factors affecting the increase.

Read More →
Photo of blue Toyota Prius parked next to a body of water with a city skyline behind it
Industryby Hannah MitchellJuly 24, 2026

July Auto Sales Simmer

Deliveries were up modestly from a year ago despite still-high prices as OEMs offered more incentives and loan rates eased somewhat.

Read More →
Ad Loading...
Front of large glass-paned, multistory office building
Industryby Hannah MitchellJuly 17, 2026

Toyota Financial Services Adds to HQ

The subsidiary says the new Texas facility is designed to foster collaboration and innovation with the aim of future growth.

Read More →