We’ve recalled 27.7 million cars in 2024. When factoring in unrepaired vehicles from prior years, more than one in four vehicles on U.S. roads have at least one open recall, translating to 72.7 million vehicles currently on the road with recall needs.
How can that number be so high?
Well, most cars are vastly complicated, and newer models are even more so. Think of the sheer volume of parts and features in just a driver’s seat — most have lumbar support, a headrest, a seatbelt, embedded heating in the seat cushion, and more.
The traditional cars we’re seeing on the road today have a lot more customization and even more parts. The reality is that these pieces break often and, as a result, need warranty recall options.
So what does this mean for vehicle recalls in 2025? Here are 5 things to know:
1. EVs Have a Long Way to Go
Everyone says electric vehicles are the future of our industry. I agree. Yet, EVs still make up a tiny fraction of total cars on the road — and not much will change in 2025.
What doesn’t get talked about enough is the individual parts of EVs. While there are fewer pieces in total (compared to traditional vehicles), these parts are complex and can malfunction relatively easily. This may lead to more recalls in the short term — i.e., in 2025.
Tesla led 2024 with 5.1 million recalls, although all could be completed via Over-the-Air (OTA) updates. Dialing in manufacturing processes and preventing more recalls long-term will realistically be a 10- to 20-year effort.
2. Recalls Will Get Addressed Quicker
Two years ago, if a recall was announced, it could take months to get your car serviced to fix the issue. But now that we’re back on track after the supply chain bottleneck from COVID, we’re able to address and fix recalls faster.
We believe this will only get better in the new year.
3. AI Will Become the New Normal
Customers are getting a lot more comfortable interacting with AI.
Building a foundation of trust can be difficult if a customer hasn’t been to your dealership in a while. We’ve put in the work to support a positive and trusting relationship between a dealership and its customers through the help of AI.
When used appropriately to streamline recall communications, scheduling, and automate otherwise tedious processes, AI can be invaluable for a business.
2025 will see more AI-driven solutions that support and improve the customer journey — and we believe customers are okay with that.
4. Fixed Ops Will Be the Cornerstone of Profitability
Fixed ops is the real profit generator in a dealership, but few people see it that way. Most general managers in automotive worked their way up from sales and, because of this, tend to focus too heavily on that side of their business.
Our goal is to educate leaders on the nuances of the fixed ops space. Those who can understand fixed ops on a deeper level and make decisions through a service-oriented lens, like using recalls as a retention and profit tool, are going to generate higher revenue in 2025 and beyond.
5. More Dealers Will Jump on the Mobile Repair Bandwagon
A trend we’re noticing across every industry is the customer desire for ease and convenience. It’s no surprise, then, that mobile service and repair have been so well-received in automotive as of late.
This is a service where technicians travel to customers’ homes to either perform repairs right on their driveway (mobile repair) or take their car to the dealership to be worked on (service valet). Because 60% of recalls can be completed via mobile, we see more dealers using mobile service to expand their reach, increase convenience, and improve recall completion rates.
From the Dealer’s Perspective
Some dealers believe mobile repair isn’t a profitable business model. But it can be lucrative if you’re equipped with the right technology — e.g., the right apps, scheduling tools, dispatching, and routing software.
This service can also be a great way to grow your business if you don’t have the money for construction costs or the physical space to expand your dealership.
From the Technician’s Perspective
Mobile service is also appealing to a new generation of technicians, particularly Millennials and Gen Z, who don’t want to be cooped up inside all day and want the freedom to move around. This service model gives them more of that flexibility.
From the Customer’s Perspective
From what we’ve seen already, the adoption of both service valet and mobile repair has had a direct correlation with customer retention. The takeaway? If you can make your customer’s life easier, they’re all the more likely to come back.
Our projection is that 70% of all dealers will have at least one mobile service truck by 2027. We believe some dealers will be ahead of the curve and invest in this service as soon as 2025.
The Bottom Line
Millions of vehicles are impacted by recalls each year, driving trends like the growth of mobile repair services, the integration of AI, and the challenges of EV manufacturing. These shifts point toward a future centered on innovation, efficiency, and customer convenience. Staying competitive requires adapting to meet both industry demands and evolving consumer expectations.
About BizzyCar:
Built by dealers, BizzyCar is an AI-driven automated Service Recall Management Platform that leverages the most accurate recall data available to identify vehicles with open recalls. It utilizes artificial intelligence to proactively schedule recall appointments directly into the DMS. BizzyCar's Mobile Service App assists Mobile Service Coordinators and Technicians with appointment scheduling, routing, and daily workflows. BizzyCar's software helps Fixed Ops departments increase service appointments, boost revenue, improve customer satisfaction and retention, and enhance operational efficiencies.
For more information, visit: BizzyCar.com.