HAMBURG — More technology, but also more breakdowns: the number of car recalls continues to climb. What is driving this trend, and how does the automotive industry’s broader crisis play into it?
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Plug-in hybrids are often said to offer the best of both worlds. But for Audi customers right now, that is not the case. Due to fire risks, the company is recalling over 18,000 plug-in hybrid models of the A8, Q7, and Q8. Problems with the high-voltage battery’s cell modules mean they can overheat during charging.
Audi is not alone in facing such troubles. Technical faults are cropping up more often across brands, even in brand-new cars fresh from the assembly line. Mercedes-Benz is currently recalling vehicles from its EQA and EQB series, where high-voltage battery defects are also to blame.
The number of recalls has risen sharply. In 2011, there were 186 recalls by carmakers in Germany; by 2024, that number had climbed to more than 600. According to the Federal Motor Transport Authority (KBA), around 2.4 million vehicles were recalled from German roads last year, nearly 50% more than the year before. The defects range from faulty airbags and broken engine components to incorrectly installed parts. In some cases, the issues are so serious that vehicles must be taken off the road entirely. Both electric and combustion-engine cars are affected.
One major reason lies in what the industry itself likes to advertise: technological innovation. Modern cars are crammed with electronics; dozens of computers control everything from the engine and battery to infotainment systems. This delivers more entertainment, safety, and comfort, but also creates a “risk factor” for faulty parts or functions, says Fabian Faehrmann of the German Automobile Club (ADAC).
Progress in propulsion technology also comes with risks. German carmakers were slow to embrace the shift to electric mobility, and now they must scramble to catch up with pioneers like Tesla and rising competition from China. Meanwhile, advances in electro-mobility are moving at breakneck speed. New models are hitting the market every month, boasting faster charging and more sophisticated digital features, which means development cycles are getting shorter and shorter.
The new technologies going into cars are expensive, as are the investments needed for new drive systems.
Such speed would have been unthinkable in the past. The Mercedes W124 mid-range series, launched in 1984 and considered the foundation of today’s E-Class, stayed in production until 1997, a full 13 years. Because it was so solidly built and dependable, fans still call it “the last real Mercedes.”
The automotive industry can only dream of such long production runs today, and cost-cutting has become the rule. The new technologies going into cars are expensive, as are the investments needed for new drive systems.
“Many car manufacturers are under pressure to save money, and that can lead to defects and, in the worst case, recalls,” says Faehrmann. Three years ago, the ADAC tested 580 car models for material and build quality. The result: even high-end cars often failed to impress.
The German Association of the Automotive Industry (VDA) rejects the notion that new cars today suffer from more quality problems. The rising number of recalls, it argues, actually reflects improved quality: “Recalls fundamentally demonstrate the high safety standards of the automotive industry, which apply to all types of drive systems,” a VDA spokesperson said. The growing figures mainly reflect stricter regulations and more advanced inspection methods.
In addition to body, chassis, or component issues, immature software is causing trouble in many vehicles, leading to system crashes and malfunctions. Industry insiders call this “banana software”: cars are delivered with unripe (green) software that only matures (turns yellow) in the customer’s hands. Ironically, this is sometimes marketed as an innovation. The “over-the-air” (OTA) software update principle means the car effectively becomes a mobile beta version.
The VDA pushes back on this criticism, arguing that with increased digitalization and connectivity, regular updates are perfectly normal. Like any other electronic device, cars need these updates to stay current.
Still, many modern cars remain prone to problems despite OTA updates. Electronic driver-assistance systems, for instance, often fail to work as reliably as they should across all brands. In a survey conducted for the automobile club ACV, four out of 10 drivers using such systems reported occasional or frequent malfunctions. Nearly one in four said the systems hindered rather than helped them.
The problem is not limited to German manufacturers. BYD, the celebrated Chinese electric vehicle maker, recently recalled more than 115,000 cars due to faults in the motor control system that could disable the electric drive. It is the largest recall in the company’s short history.
Matthias Schmidt, an automotive industry analyst, says this comes as no surprise. He recalls hearing about the challenges Volvo auto faced during its shift to full digitalization at its headquarters in Stockholm. Volvo is part of the Chinese Geely Group. The so-called vertical integration model, he says, has caused difficulties.
BYD controls most of the value chain, from sourcing raw materials and producing batteries.
That approach is considered BYD’s key advantage. Rather than buying ready-made components from suppliers like Bosch or ZF, BYD controls most of its value chain, from sourcing raw materials and producing batteries to developing software for infotainment and autonomous driving.
Manufacturers making the shift toward software-driven vehicles often struggle to iron out early problems, says Schmidt. This is especially true because many models share the same components. If one part is defective, it affects multiple vehicles. “We expect recalls to become even more frequent,” Schmidt says.
When recalls occur, consumers may be entitled to compensation if the manufacturer released a defective product. A law firm has already filed suit against Mercedes-Benz over faulty high-voltage batteries in its EQA and EQB models. Short circuits in these vehicles pose a fire hazard, prompting the Federal Motor Transport Authority to order a recall in February. But even after software updates and charging restrictions, the lawyers argue, the risk remains: “A definitive technical solution has yet to be found.”
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