Recall Management

Recall management is the process by which a dealership handles vehicle recalls issued by manufacturers or Transport Canada to ensure affected vehicles are repaired and safe. When an automaker announces a recall (for example, for an airbag issue or a safety defect), dealerships are tasked with checking which of their sold or in-stock vehicles are involved and then performing the required repair or part replacement free of charge to the customer (the manufacturer reimburses the dealer for this work). The management aspect includes: identifying affected VINs in the dealership’s customer database, contacting those customers (via phone, mail or email) to inform them of the recall and urge them to schedule service, ordering sufficient parts to handle the recall jobs, and completing the repairs in a timely manner. In Canada, some recalls are mandatory to be fixed before a vehicle can be sold – Ontario, for example, has guidelines that dealers should not retail a car with an open safety recall. So, if the dealership has used cars in inventory, they need to check for open recalls (often using tools like OEM online systems or CARFAX Canada reports) and fix them before selling or at least let potential buyers know about them if parts aren’t available yet. Managing recalls efficiently is crucial because it’s a safety issue and affects customer trust. A well-run recall program means customers are inconvenienced as little as possible – maybe offering a shuttle or loaner for a recall fix – and it can even be an opportunity for the service department to build goodwill (customer sees the dealership handling a problem proactively) and possibly inspect the car for other needed maintenance while it’s in. Keeping clear records is also important, as the dealership must report completed recall work back to the manufacturer and sometimes to regulators. Essentially, recall management is part of the dealership's duty of care and compliance, ensuring all vehicles on the road are as safe as possible and maintaining the brand’s integrity.