Many automotive executives expect that more vehicle recalls will take place in 2015 and 2016. They may not be using the types of predictive analytics tools that will be necessary for recall response and product planning, according to a study by Deloitte. It may be a good opportunity for automakers to adopt similar methods to that which has become common in used vehicle valuation forecasts.
In the Deloitte study, 42.3% of automotive executives who took an online poll expect more industry recalls in 2015 and 2016; but only 8% use advanced predictive analytics to help prevent, prepare for, and manage recalls. Nearly one-quarter (23%) have no operational product safety and recall anticipatory analytic capabilities.
“By cross-source correlating internal and external data sources, employing specialized advanced analytics, and leveraging interactive visualizations, these companies can improve customer satisfaction, vehicle safety, and brand perceptions,” said Deloitte’s Derek Snaidauf.
We’ve seen used vehicle valuation forecasts change in nearly all the market reports in the past two years. Recalls have been carefully followed on the remarketing side – as it very much affects brand quality and new vehicle sales, and eventual used vehicle values. If vehicle recalls continue, the predictive analytics practices will need to be integrated more in recall response and new vehicle product planning.
Nearly 91% of respondents think that recalls are impacting the working relationships between suppliers and OEMs. One of the biggest challenges to OEM-supplier collaboration in preventing, preparing for and managing recall-related events was ineffective communication channels, according to nearly 22% of the survey respondents.