Dietrich College, Carnegie Mellon University

Information Systems Department Senior Honors Thesis

Total Recall:
A Data-Driven Analysis of the
Takata Airbag Recall

Karen Segal
Thesis Advisor: Randy S. Weinberg
Table of Contents

Acknowledgements 3

Introduction 4

Chapter 1: The Automotive Recall Process Explained 6

Background 6
Initiating a Recall 6
NHTSA Recall Investigation Process 7

Chapter 2: Automotive Recall Case Study: The Infamous Takata Airbag Inflator Recall 10
Background 10
Recall Repair Process 11
Effect on Takata 12
Consumer Inquiries 13
Case Reflections 14

Chapter 3: Data and Methods 15

Motivation 15
Data 15
Flat “All” Recall Database 16
Quarterly Recall Database 20
Considerations 21

Chapter 4: Data Analysis 23

Completion Rates 23
Existing Work on Completion Rates 23
Results and Insights 25
Make and Model 28
Consumer Reviews 29

Conclusion 31

Appendices 33
Appendix A: Excerpt from Takata Airbag Recall Request Letter 33
Appendix B: Takata Recall Reminder Notice 34
Appendix C: Schedule for filing of Takata Airbag Recalls 35
Appendix D: Completion Rates by Year 36
Appendix E: Deaths in U.S. Due to Defective Takata Airbag Inflator in Honda Vehicles 36

2
Acknowledgements

I would never have been able to write this thesis without the help of everyone who

supported me along the way. First and foremost, I would like to thank my advisor, Randy

Weinberg, for his support and guidance with this project from the day that I went into his office

with an array of ideas to research. Thanks to Jordan Cox for being a great pillar of motivation

and support during our work sessions and for proofreading my thesis. Thank you as well to Carol

Qu for providing input and answering my questions whenever I was talking or reading out loud.

Thank you to Michelle Wu and Samantha Wang for helping me brainstorm title ideas and

practice communicating my work. Finally, thanks to Tamar Feigenbaum and Gary DiLisio, for

encouraging me to venture down the road less traveled, as it truly has made all the difference.1

1
Frost, Robert. “The Road Not Taken.” ​Poetry Foundation.
3
Introduction

According to Toyota, their vehicles are made of an average of 30,000 parts, and the

automotive industry has grown exponentially since cars were first manufactured. Building at

such a large scale from a wide array of components contributes to an extremely complex

manufacturing process.

Protocols and rigorous safety measures may be intentionally or unintentionally bypassed

for the sake of meeting deadlines and getting products on the market. Due to an added level of

complexity from products using components from across global supply chains, manufacturers

must often rely on vendors’ assurances of safety and reliability. As a result of global supply

chain complexity and potentially harmful lapses in safety assurance (whether intentional or

unintentional), products in a wide array of industries must be recalled for remediation when

defects are found.

Notable recent recalls include the Samsung Galaxy Note 7 mobile device and Cuisinart

Food Processors. However, in addition to these high profile recalls, numerous different products

including beef, chicken, candy bars, spinach, peanut butter, medicines, power tools, and baby

cribs have also been recalled in recent years.2 Six federal agencies3 within the U.S. Government

have collaborated to create a website4 that serves as a hub for all U.S. recalls for consumer

products, motor vehicles, boats, food, medicine, cosmetics, and environmental products.

2
Benjamin, Scott. “How Automotive Recalls Work.” February 10, 2010.
www.auto.howstuffworks.com/automotive-recalls.htm​.
3
Consumer Product Safety Commission, National Highway Traffic Safety Administration, U.S. Coast Guard, Food
and Drug Administration, U.S. Department of Agriculture, Environmental Protection Agency.
4
www.recalls.gov
4
 In the automotive industry, several hundred recalls are released every year, impacting

tens of millions of vehicles and end consumers. In 2015, for example, United States vehicle

recalls surpassed an all-time high for two years in a row, with 51.2 million vehicles affected over

868 separate recalls.5 Data analysis by iSeeCars indicates that the industry cumulative average

from January 1985 to September 2016 is 1,115 vehicles recalled per 1,000 vehicles sold, with

some vehicles recalled for multiple reasons. However, recalls by manufacturer vary, with eleven

out of eighteen automakers having recall rates below that average.6

This paper focuses specifically on informing readers about automotive recalls in the

United States using the National Highway Traffic Safety Administration (NHTSA) automotive

recall datasets. The recall process is illustrated by highlighting a particularly egregious recall, the

Takata airbag inflator defect.

5
Bomey, Nathan. “U.S. auto recalls hit all-time record in 2015.” January 21, 2016.
www.usatoday.com/story/money/cars/2016/01/21/nhtsa-recall-completion-washington-auto-show-mark-rosekind/79
111364/
6
Salomon, Sanjay. “The automakers with the best and worst recall rates.” Boston.com. November 1, 2016.
www.boston.com/cars/cars/2016/11/01/the-automakers-that-have-the-best-and-worst-recall-rates
5
Chapter 1: The Automotive Recall Process Explained

Background

The National Traffic and Motor Vehicle Safety Act, which was originally enacted in

1966, gives the Department of Transportation’s NHTSA the authority to issue vehicle safety

standards and require manufacturers to recall vehicles that have safety-related defects or do not

meet Federal Motor Vehicle Safety Standards. These standards apply to all vehicles and vehicle

related equipment manufactured or imported for sale in the United States. They also set

minimum performance requirements for the parts of the vehicle that most directly affect its safe

operation or that protect drivers and passengers in the event of a crash. Since 1966, more than

390 million cars, trucks, buses, recreational vehicles, motorcycles, and mopeds, as well as 46

million tires, 66 million pieces of motor vehicle equipment, and 42 million child safety seats

were recalled to correct safety defects.7

Initiating a Recall

Recalls can be voluntarily initiated by manufacturers (who produce the vehicle or

particular part), influenced by NHTSA investigations, or ordered by NHTSA via the courts. If a

safety defect is discovered, the manufacturer is required to notify NHTSA, as well as vehicle or

equipment owners, dealers, and distributors. The manufacturer is also required to fix the problem

at no charge to the owner. NHTSA is responsible for monitoring the manufacturer’s corrective

action to ensure successful completion of the recall campaign. If a complaint is filed, the party

7
“Motor Vehicle Defects and Safety Recalls: What Every Vehicle Owner Should Know.” SaferCar. May 2011.
www-odi.nhtsa.dot.gov/recalls/recallprocess.cfm​.
6
that filed the complaint may be contacted by an investigator from the Office of Defects

Investigation (ODI), which conducts defect investigations to support NHTSA’s efforts.

If the manufacturers become aware of a recall and do not notify the appropriate parties,

they can be brought to court and charged large fines for knowingly putting customers in danger.

NHTSA Recall Investigation Process

If enough consumers contact the NHTSA and file a report about the same problem with

the same type of vehicle, the NHTSA may decide to open an investigation.8 The ODI is the

agency in charge of performing the automotive recall investigation which consists of the

following steps:

1. Screening

This is the first step in the process to determine whether to open an investigation

regarding an alleged safety defect. During the screening process available information received

from the manufacturer or consumers is reviewed by the Defects Assessment Division (DAD).9 If

this division determines that the available information indicates a drastic failure is developing,

the same information is “presented to a panel of ODI staff for a recommendation on whether to

open a safety defect investigation.”10

8
Benjamin, Scott. “How Automotive Recalls Work.” February 10, 2010.
9
“What Every Vehicle Owner Should Know.” SaferCar. May 2011.
10
Ibid.
7
2. Petition Analyses

During this stage, petitions, which can be submitted by anyone asking NHTSA to open a

safety related defect investigation, are analyzed by ODI. After analysis, ODI either opens a

defect investigation or publishes the reasons for denial in the Federal Register, the daily

newspaper of the United States federal government.11 A person may also submit a petition for

NHTSA to hold a hearing on “whether a manufacturer has met its obligation to notify and/or

remedy a safety defect or disregard for a Safety Standard.”12 If approved, a hearing is held,

otherwise the reasons for denial are published in the Federal Register.

3. Investigations

During the Preliminary Evaluation (PE) phase, ODI gathers information from the

manufacturer and determines whether further analysis is warranted.13 The manufacturer also has

the opportunity to present its views regarding the alleged defect at this point.14 PEs are either

closed because further investigation is not needed or because the manufacturer decided to

conduct a recall.15 If ODI believes further analysis is warranted, the PE is upgraded to

Engineering Analysis (EA).16

During an EA, ODI conducts a more detailed analysis of the alleged defect by

supplementing the information collected during the PE with inspections, tests, and surveys from

11
“About the Federal Register.” National Archives. September 15, 2016.
www.archives.gov/federal-register/the-federal-register/about.html​.
12
“What Every Vehicle Owner Should Know.” SaferCar. May 2011.
13
Ibid.
14
Ibid.
15
Ibid.
16
Ibid.
8
manufacturers and suppliers.17 The EA investigation can be closed if the manufacturer notified

NHTSA that it will conduct a safety recall or if NHTSA did not identify a safety-related defect.

However, if ODI believes that a safety-related defect exists, the ODI investigator prepares a

briefing to be presented to a panel of experts.18 If the agency panel agrees with ODI’s recall

recommendation, ODI notifies the manufacturer and then sends a Recall Request Letter19 to the

manufacturer.

4. Recall Management

The Recall Management Division maintains the records for all recalls, and “monitors

these recalls to ensure that the recall completion rate and remedy are adequate.”20 If the facts

indicate a problem with the number of recalls or the recall execution, it may lead in a recall

investigation which can expand a previously announced recall or adjust the method of recall

remedies.21

17
Ibid.
18
“What Every Vehicle Owner Should Know.” SaferCar. May 2011.
19
See Appendix A, www-odi.nhtsa.dot.gov/acms/cs/jaxrs/download/doc/UCM467335/INRM-PE14016-60978.pdf
20
“What Every Vehicle Owner Should Know.” SaferCar. May 2011.
21
Ibid.
9
Chapter 2: Automotive Recall Case Study: The Infamous Takata

Airbag Inflator Recall

Background

The automotive recall incident explained in this chapter guides the data analysis

throughout this paper. This incident is what Department of Transportation Secretary Anthony

Foxx called “the most complex consumer safety recall in U.S. History” on May 19, 2015, during

the press conference when the expansion of the recall was announced.22 Vehicles made by

nineteen different automakers were recalled to replace potentially hazardous frontal airbags on

the driver’s side or passenger’s side. As of 2017, the recall in the United States has affected

nearly 70 million airbags in 42 million vehicles.23

The airbags are made by Takata Corporation, an automotive safety parts company based

in Japan that has production facilities on four continents and supplies airbags for major

automotive manufacturers around the world. Since production began around June 2000, a family

of Takata-manufactured airbag inflators has contained a propellant that degrades due to a

combination of time, high temperature fluctuations, and/or humidity.24 The end date of

production of the faulty inflators is still unclear and one of the reasons that the recall is

continuously expanded.

22
Rosekind, Mark R. “Remarks: Takata Press Conference.” May 19, 2015. NHTSA.
www.nhtsa.gov/speeches-presentations/remarks-takata-press-conference
23
Atiyeh, Clifford and Blackwell, Rusty. “Massive Takata Airbag Recall”. March 2, 2017.
www.blog.caranddriver.com/massive-takata-airbag-recall-everything-you-need-to-know-including-full-list-of-affect
ed-vehicles​.
24
“Takata Recall Expansion: What Consumers Need to Know”.
www.nhtsa.gov/takata-air-bags/takata-recall-expansion-what-consumers-need-know​.
10
 Takata representatives have admitted to being unsure how many airbag inflators are in

question25 and which cars use its defective inflators. At one point, Takata was replacing the

faulty part with another faulty part.26

The degradation in the faulty inflators can cause the propellant to burn too quickly,

creating more pressure than the inflator can withstand during airbag deployment, and potentially

causing the steel inflator housing to rupture, propelling steel fragments outward. In extreme

cases, these metal fragments present vehicle occupants with the potential for injury or death.27 As

of January 2017, eleven deaths28 and approximately 180 injuries occurred due to the Takata

airbag inflator defect.

Recall Repair Process

As a result of the size and impact of the recall, it can take weeks or months for the

replacement airbags to arrive to dealers for installation. The involved automakers are prioritizing

resources by focusing on high-humidity areas such as Florida and Georgia where the airbag

inflators have higher risk of resulting in the fatal explosion.29 In an attempt to replace the large

number of airbag inflators, Takata ramped up production but with all the projected replacements,

other suppliers have supported their initiatives. Takata said that it is using competitors’,

including AutoLiv, TRW, and Daicel, products in half the inflator-replacement kits and expects

25
Atiyeh, Clifford. “Toyota Recalling 844,000 U.S. Cars for Shrapnel-Shooting Airbags.” June 16, 2014.
www.blog.caranddriver.com/toyota-recalling-844000-u-s-cars-for-shrapnel-shooting-airbags/
26
Atiyeh, Clifford and Blackwell, Rusty. “Massive Takata Airbag Recall”. March 2, 2017.
27
Blomquist, Harold R. “Expert Report.” NHTSA. May 4, 2015.
www.nhtsa.gov/sites/nhtsa.dot.gov/files/documents/expert_report-hrblomquist.pdf​.
28
See Appendix E, “Injuries & Deaths.” Honda. March 31, 2017.
www.hondaairbaginfo.com/takata-airbag-inflator-recall-fact-sheet/
29
See Appendix D, “Takata Recall Expansion.” NHTSA. ​www.nhtsa.gov/recall-spotlight/takata-air-bags​,
“Identify Your Zone”. Mopar. ​www.mopar.com/ramtrucks/en-us/my-vehicle/recalls/takata-recalls.html​.
11
that number to reach more than 70 percent.30 In some cases, vehicle owners need to have their

airbag inflators replaced a second time because a temporary fix is needed due to parts shortages.

Despite the severity of this issue, recall completion rates are still considered too low by

government standards. According to NHTSA completion rate data31 in the United States a total

of sixty-five percent (13,035,556) of affected airbags were repaired with nearly seventy percent

of driver-side airbags (6,950,164) and about sixty percent (6,085,392) of passenger-side airbags

repaired. 32

Effect on Takata

In November of 2015, US federal regulators fined Takata Corporation $200 million33 in

response to Takata’s admittance of a defect in its airbag inflators for which it did not initiate a

timely recall.34 Additionally, several manufacturers, including Toyota, Mazda, Honda, Nissan,

and Ford, announced that they will no longer equip new vehicles with Takata’s front or

passenger airbag inflators.

In January 2017, United States prosecutors charged three executives at Takata with

fabricating test data to mask the airbag defect. According to the indictment, the executives were

at the center of manipulating the airbag safety data for as long as fifteen years and knew as early

as the year 2000 that the airbags’ metal inflators could explode. The prosecutors also fined

30
“Takata Airbag Recall - Everything You Need to Know”. Consumer Reports. March 2, 2017.
www.consumerreports.org/cro/news/2016/05/everything-you-need-to-know-about-the-takata-air-bag-recall
31
As of January 6, 2017.
32
“Completion Rates.” NHTSA. January 6, 2017. ​www.safercar.gov/rs/takata/takata-completion-rates.html
33
$70 million of this fine was paid upfront.
34
Puzzanghera, Jim. “Takata fined $70 million for faulty airbags in at least 19 million U.S. vehicles.” Los Angeles
Times. November 3, 2015. ​www.latimes.com/business/la-fi-takata-airbags-20151103-story.html​.

12
Takata $1 billion and announced that Takata agreed to plead guilty to charges of wire fraud for

providing the false data.

The United States Justice Department said that Takata would be required to pay a $25

million fine, $125 million in a victim compensation fund, including for future incidents, and

$850 million to compensate automakers for massive recall parts. Although the guilty plea and

fine were expected, the charges against the executives intensified the scandal and brought the

company to the brink of bankruptcy.35 At the time of this report, Takata also faces a class-action

lawsuit filed by owners of cars fitted with Takata airbags, among other litigation.

Consumer Inquiries

An effect of being one of the largest recalls in history is that not all recalled vehicles can

be repaired immediately and as a result concerned vehicle owners ask several questions.

One frequently asked question is whether it is safer to drive with a defective airbag or to

disable the defective airbag. In summary, it is illegal and unsafe to disable an airbag in a vehicle

and therefore the consumer should never disable his or her airbags. NHTSA estimates that

frontal airbags saved 2,400 lives in 2014 alone. Therefore, if involved in a crash, it is more likely

that the airbag will perform properly and protect the passenger than rupture and cause harm.

On the contrary, an airbag that is purposely disabled has a 100 percent chance of failing

to provide any protection in a crash. Additionally, NHTSA says that “the vast majority of Takata

airbags will perform as expected.” If the consumer feels uncomfortable driving the vehicle

before the recall repair has been performed, he or she can contact the dealer to ask for a loaner

35
Tabuchi, Hiroko and Boudette, Neal E. “3 Takata Executive Face Criminal Charges Over Exploding Airbags.”
The New York Times. January 13, 2017.
www.nytimes.com/2017/01/13/business/takata-airbag-criminal-charges.html
13
until an interim or final repair is completed. However, dealers and manufacturers are not required

by law to provide the owner with a loaner vehicle.36

Another commonly asked question is regarding the priority of vehicles that are registered

in northern states but spend winters in warm climates such as southern Florida. Consistent with

the research, the data collected and examined by NHTSA demonstrates that long-term exposure

to combined high heat and humidity creates the risk that a Takata inflator is likely to rupture. A

vehicle that spends winters in a hot and humid location is not subjected to the same sustained

periods of heat and humidity as a vehicle that has been driven in these conditions year-round for

a prolonged period.37

Case Reflections

An important factor regarding the Takata Airbag Recall is the impact of utilizing a global

supply system. Takata sells automotive parts to various manufacturers around the world. Many

of the articles as well as the NHTSA data focus on injuries and fatalities this defect has caused in

incidents in the United States. However, because Takata is a global supplier there have been

injuries reported in other countries. This emphasizes the importance of regulated safety

precautions when developing products at a global scale. The effect and cost of failure is

widespread and high. Regulations and procedures can vary by country.

Although manufacturers have a legal obligation to report a defect as soon as they become

aware of it, Takata did not adhere to this obligation. Earlier tests several years back indicated

there was a problem with the airbags but senior executives ignored the warnings and reports and

36
“Takata Air Bags: FAQs.” NHTSA. January 19, 2017. ​www.nhtsa.gov/recall-spotlight/takata-air-bags​.
37
Ibid.
14
continued along their initial trajectory. In addition to the large financial cost of supplying a

defective product globally, Takata now faces litigation and fines because of the fact that the

executives did not address the defect and inform the appropriate parties as soon as it came to

their attention.

Chapter 3: Data and Methods

Motivation

The motivation for focusing on vehicles is due a personal interest in the field. Exploration

of vehicle dataset APIs such as Edmunds and iSeeCars, prompted questions pertaining to the

reliability of specific cars and how they compare to manufacturers’ reputations. This eventually

led to information regarding automotive recalls and ultimately the NHTSA data website.38

Data

The NHTSA ODI provides databases for complaints, defect investigations, recalls, and

manufacturer communication to the public through the safercar.gov site. This project focuses on

the Automotive Recall databases looking at both the Flat Recall and Quarterly Recall databases.

The data was loaded into a PostgreSQL database for ease of query and analysis. Only recalls for

the Takata airbag inflator were considered during analysis.

38
“Download Data From NHTSA/ODI Databases.” SaferCar. ​www-odi.nhtsa.dot.gov/downloads/
15
Flat “All” Recall Database

The Recall dataset contains all NHTSA safety-related defect and compliance campaigns

since 1967. This dataset contains a range of information regarding particular recall records

including all products within a campaign. The database contains the following fields:

Name Description Example Data Notes

RECORD_ID Uniquely identifies the 104180

record.

CAMPNO NHTSA campaign number 14V362000 From researching the

used to uniquely identify a campaign numbers,
defect. there is no additional
meaning or
significance to the
particular characters
and digits in a
campaign number.
Different vehicles,
vehicle years, etc.
can share a campaign
number

MAKETXT Vehicle or equipment make Mazda Different than

manufacturer, for
example General
Motors
(manufacturer)
makes Chevrolet,
Cadillac, etc. If not a
vehicle, make is
related to the part
(i.e. Takata for air
bags).

MODELTXT Vehicle or equipment model Mazda6

YEARTXT Model year 2004 If year unknown,

designated as 9999
or N/A

16
MFGCAMPN Manufacturer campaign 7714F Different campaign
O number used to uniquely number than
identify a defect for a NHTSA, likely used
manufacturer. for manufacturer
record purposes. Can
be blank, often
equipment
manufacturers do not
have a separate
campaign number.

COMPNAME Defect component Air Bags

MFGNAME Manufacturer that filed the Mazda North Not necessarily the
defect or noncompliance American Operations same as the
report manufacturer that
produces the product

BGMAN Begin date of manufacturing 5/29/02 Date that the

defected product
began manufacturing

ENDMAN End date of manufacturing 3/4/04 Date that the

defected product
finished
manufacturing

RCLTYPECD Vehicle (V), equipment (E), V

or tire report (T)

POTAFF Potential number of units 19544 Often refers to the

affected by recall number of cars
owned that are
affected. The number
of potential units is
tied to a specific
campaign and will
appear in all of that
campaign’s records.
Therefore, it is only
informative to sum
the potential units by
manufacturer.

ODATE Date when owner was 8/21/14

notified by manufacturer

17
INFLUENCED Recall initiator MFR MFR (manufacturer),
_BY OVSC (Office of
Vehicle Safety
Compliance), or ODI
(Office of Defect
Investigation)

MFGTXT Manufacturer of recalled Mazda Motor Corp.

vehicles/products

RCDATE Report received date 6/23/14

DATEA Record creation date 6/24/14

RPNO Regulation part number

FMVSS Federal Motor Vehicle

Safety Standard Number

DESC_DEFEC Defect summary Mazda North

T America Operations
(Mazda) is recalling
certain model year
2003-2004 Mazda6
vehicles and 2004
RX-8 vehicles to
address a safety
defect in the
passenger side frontal
airbag which may
produce excessive
internal pressure
causing the inflator to
rupture upon
deployment of the air
bag.

CONSEQUEN Consequence summary In the event of a crash

CE_DEFECT necessitating
deployment of the
passenger's frontal
airbag, the inflator
could rupture with
metal fragments
striking and
potentially seriously

18
 injuring the passenger
seat occupant or other
occupants.

CORRECTIVE Corrective summary Owners of all

_ACTION vehicles on which a
defective air bag may
have been installed as
original equipment
will be notified.
Dealers will replace
the defective air bag
inflator, free of
charge. The safety
recall is scheduled to
begin in August
2014. Owners may
contact Mazda
Customer Assistance
Center at
1-800-222-5500.
Mazda's recall
campaign number is
7714F. Note: This is
an expansion of
NHTSA Recall No.
13V-130.

NOTES Recall notes Owners may also

contact the National
Highway Traffic
Safety Administration
Vehicle Safety
Hotline at
1-888-327-4236
(TTY
1-800-424-9153), or
go to
www.safercar.gov.

RCL_CMPT_I Uniquely identifies a 00005435500011055

D recalled component 3000000256

19
Quarterly Recall Database
The Recall Quarterly database contains data from Year 2015 Quarter 1 through the Year

2016 Quarter 2. It differs from the overall recall database in that it provides completion data

(number of defective units remedied) for specific quarters of the year in relation to specific recall

campaigns.

Name Description Example Data

MFGTXT Manufacturer name Ford Motor

Company

CAMPNO NHTSA campaign number 11V445000

MFGCAMPNO Manufacturer campaign number 12212

RCLSUBJ Recall subject Front Turn Signal

Bulbs

ODATE Owner notification begin date 20140908

ODATEEND Owner notification end date Sometimes blank if

still ongoing

RPTNO Report number 3

RPTQTR Report quarter 2015-1

INVOLVED Involved population 120426

TTLREMEDIED Total number of defects remedied 80958

TTLUNREACH Total number of defects unreachable 1611

TTLREMOVED Total number of defects removed 0

SUBMDATE Date that quarterly report data was submitted 20150409

20
Considerations

Most of the analyses in this paper focus on looking at trends specifically related to

automotive manufacturers. Therefore, the charts exclude information related to parts

manufacturers that distribute to automotive manufacturers. When listing the manufacturers most

affected by the Takata airbag inflator recall, the numbers attributed specifically for Takata (the

supplier) in the dataset are excluded from visualizations.

In addition to having a consistent campaign number, the number of potential units

affected is also consistent across the same campaign. By doing some additional research

regarding number of particular vehicle models sold​[39][40]​ and summing up the numbers, it appears

to be generally true that the number of potential units is the sum of the total number of vehicles

sold pertaining to the specific campaign which could have that defect. Therefore, the number of

potential units affected (POTAFF in the Flat Recall Database) is consistent for an entire

campaign because it represents all the vehicle make and models.

For example, if a recall campaign contains different Mazda vehicles including the 2004

RX-8, the 2005 Mazda6, and the 2006 Mazda6, the potential units is the sum of the number of all

those vehicles sold. In a recall expansion campaign that includes the 2007 Mazda6 in addition to

the 2006 Mazda6, the potential affected units contain the number of 2006 Mazda6 units that were

part of the earlier campaign. As a result, summing potential affected units for multiple campaigns

does not provide reliable information as it may contain overlapping data.

“Mazda 6 US Car Sales Figures.” ​www.carsalesbase.com/us-car-sales-data/mazda/mazda6/​.

39
40
Cain, Timothy. “Mazda 6 Sales Figures.” Good Car Bad Car. January 1, 2011.
www.goodcarbadcar.net/2011/01/mazda-6-sales-figures.html

21
 After attaining a better understanding of this dataset and researching data available

through other APIs such as Edmunds, it appears there is no concrete way to measure the severity,

meaning the potential of harm, of a particular defect entry using NHTSA recall data. As

indicated in the fields above, the recall data includes the specific recall text and estimated

number of vehicles impacted, however it is difficult to gauge the potential for harm and how

extreme the harm would be solely from the data provided.

The idea of using consumer sentiment analysis on the defect summary was considered.

However, because there is no data field for the severity of the recall, it would not be possible to

measure the accuracy of a sentiment analysis. If the recall severity data is available, a future

research project could conduct a sentiment analysis of the recall descriptions to determine the

severity of the recall.

22
Chapter 4: Data Analysis

Completion Rates

Although the actual size of the recall is important in terms of the effect it has, another

important aspect to consider is to what extent consumers actually fulfill the recall notices.

Completion rates indicate whether the manufacturers are effectively communicating the need for

repair to vehicle owners and whether the owners are taking their vehicles to their dealers for

recall repairs.

In recent years, car companies have stopped selling new cars with recently discovered

defects. Federal law prohibits dealerships from selling a new car if a recall repair has not yet

been performed. Additionally, new rules prevent rental car companies from renting cars with

open recalls. However, used-car buyers are not protected the same way and there are ongoing

efforts to prevent used car dealers from selling used cars with open recalls. These efforts help

encourage new car and used car dealers to investigate and repair affected vehicles.41

Existing Work on Completion Rates

Stout Risius Ross (SRR), a leading independent advisory firm specializing in investment

banking, valuation advisory, dispute consulting, and management consulting services, conducted

a study in 2015 regarding automotive safety and recalls. SRR found that from the years

2004-2013, the average completion for recalls increased.42

41
Linkov, Jon. “How Recalls Impact Used-Car Buyers.” August 31, 2015.
www.consumerreports.org/cro/cars/how-recalls-impact-used-car-buyers
42
See Appendix C. Steinkamp, Neil and Reed, Jake. “A Study Of Recall Completion Rates.” July 6, 2015.
www.autoindustrylawblog.com/2015/07/06/a-study-of-recall-completion-rates/​.
23
 SRR also found that completion rates vary significantly depending on the type of the

component that failed (Figure A), vehicle age, and size of the recall. Through the past ten years,

completion rates for air bags and seat belt related defects were much lower than those for

powertrain and steering-related defects. Completion rates for recalls involving older vehicles are

generally lower, with the greatest difference between vehicles older than three years and newer

than three years. Also, completion rates for larger recalls are often 5 to 10 percent lower than for

smaller-sized recalls.

Various research organizations performed consumer surveys and spoke to industry

experts to discover other factors that negatively influence completion rates. Consumer fatigue,

perception of severity, and burden of repair have an impact on recall completion. Consumers are

also increasingly technologically inclined and thus less likely to respond to paper mailings.

Figure A: Vehicle Subsystem Recall Completion Rates43

43
Timian, Jennifer. “Safety Recalls Completion.” SAE International, NHTSA.
www.sae.org/events/gim/presentations/2012/timian.pdf
24
Results and Insights

This research raises the question of whether certain manufacturers performed better than

others in regards to the number of customers that fulfilled the Takata airbag recall. Analysis of

the quarterly data highlighted differences in completion rates across manufacturers. This analysis

was performed by querying the dataset for entries related to the Takata airbag recall (i.e.

containing “metal fragments” or “air bag inflators”).

As the quarterly data contains completion information pertaining to a particular

campaign, it was only possible to see how various manufacturers compare. For example, by the

end of the third quarter of 2015, Honda had a total of 4,322,559 vehicles involved in the

campaign with 815,943 remedied, whereas Toyota had 3,042,525 involved and 408,746

remedied. By drawing out the particular recall campaigns for each manufacturer and looking at

the various numbers, it is possible to calculate overall completion rates by each quarter.

General Motors was not included in this analysis because it only had data for one quarter,

compared to the other manufacturers that had data for at least five quarters. This suggests, that

for unknown reasons, that numbers were not entered in the quarterly dataset for General Motors.

Regarding the data in general, especially related to quarterly data, it is unclear who enters the

data and what date the quarterly data is collected until. Even further researching and digging did

not fill in the gaps regarding the data.

25
 When looking at Figure B, it is perplexing how Honda could have taken a dip in

percentage of remedied recalls. After all, how can a remedied vehicle become unremedied?

Looking at the numbers provided in the dataset as well as additional research, the dip may be due

to additional vehicles added to the list of affected vehicles. Honda remains the most affected

manufacturer by the Takata Airbag recall. However, it is unclear whether Toyota did not have as

large of an increase in vehicles added or is better at getting owners to bring their vehicles in for

repair.

Figure B: Percentage of Faulty Airbag Inflators Remedied by Quarter

26
 Figures C and D show completion rates for various manufacturers. These figures suggest

that there is no relation between number of airbags remedied and reachability of vehicle owners.

In Figures C and D, manufacturers who have higher completion rates do not have a smaller

percentage of unreachable vehicle owners. However, the completion rates still have a lot of room

for improvement as there are a large number of vehicles on the road that still have the faulty

Takata airbag inflator either due to a lack of parts or owners not getting their vehicles repaired.

Figure C: Percent of Faulty Airbags Remedied

Figure D: Percent of Faulty Airbags Unreachable

27
Make and Model

Although it was not possible to track trends for particular vehicle makes and models

within the quarterly data as the data was not given to that level of granularity, it was available in

the overall NHTSA recall dataset. While it is possible to view the number of recalls associated

with a particular vehicle make and model using the NHTSA recall information service, it is not

possible to see how different vehicles compare to one another. Perhaps when consumers are

looking to purchase a used vehicle, they would be curious to know which recalls have been

published for that vehicle and whether the owner had them repaired.

Figure E represents the ten vehicles that had the most number of recalls related to the

Takata airbag inflator. In this figure, each recall counted for a vehicle represents a unique recall

campaign. The potential units column provides a sense of the scale of recall campaigns, but does

not accurately represent the number of units for the particular vehicle model that was recalled.

Notably, there are some rows that contain the same number of potential units. This is because the

potential units are estimated for an entire recall campaign, which represents many models for a

particular make. The NHTSA dataset does not provide units associated with particular vehicle

makes and models. Although all of the top ten vehicles affected by the Takata airbag inflator

recall shown are Honda vehicles, making conclusions about particular vehicle makes and models

is limited when using the NHTSA dataset.

28
 Figure E: Make and Models with Most Number of Takata Airbag Inflator Recalls

Make Model Number of Recalls Total Potential Units

Honda CR-V 8 16,655,713

Honda Pilot 6 14,423,011

Honda Accord 5 12,632,117

Honda Civic 5 12,632,117

Honda Civic GX 3 12,498,910

Honda Civic Hybrid 4 12,498,910

Acura MDX 5 11,703,625

Honda Element 5 11,703,625

Honda Odyssey 5 11,703,625

Honda Ridgeline 5 10,437,331

Consumer Reviews

The results from Figure E helped inform the researcher that the NHTSA dataset could not

predict reliability of a particular vehicle. The main initiatives of NHTSA are to inform vehicle

owners of recalls and encourage them to repair the defects for their own safety. However, the

Edmunds vehicle API provides the NHTSA recall information and other automobile data such as

ratings and reviews. To determine whether recalls can affect a vehicle’s reliability or ratings,

reviews from the Edmunds API were sampled before and after vehicle recalls.

Although this analysis looks at the Edmunds API, the NHTSA data was utilized to select

which vehicles makes to research and provide the date owners were notified of the recall.

Additionally, the vehicle make and year needed to have reviews by consumers both before and

29
after the recall was initiated. Initially, one of the vehicles considered for the analyses was the

Honda Element. However, some additional research indicated that this vehicle was discontinued

after the year 2011 and it was only popular with a niche group of consumers.

The next vehicle that was selected for further analysis was the 2005 Honda Pilot. This

vehicle has been produced since 2002, with model years beginning in 2003 and continuing today
44
. The vehicle has been consistently rated well by NHTSA safety reports and popular among

consumers over the years. The 2005 Honda Pilot was recalled on July 1, 2015. However, because

this is an older car, most of the reviews came prior to the recall date. Out of 386 consumer

reviews, nine of them were written after the recall date and did not differ substantially from those

written prior to the recall.45

The Honda Civic, which was first introduced in 1972 and has a reputation for being

fuel-efficient and reliable, has sixty-three entries in the NHTSA database related to the Takata

airbag inflator recall for various combinations of models and years. Less than a month after the

2004 Honda Civic, an Edmunds user rated the vehicle highly, but did mention the need to bring

it in for servicing because of the recall. In an excerpt from the review46, the customer says “Since

then she has put only 12,000 miles on it and the only time it was in the shop was for the airbag

recall. It runs and drives like new after 11 years.”

Reading an excerpt that referenced a recall to quantify the amount of service needed,

provided the motivation to explore whether other owners mention recalls to make a point. The

2004 Honda Pilot has several owners that mention recalls in positive reviews. Martin Cooke

44
As of 2017
45
Recall date from NHTSA database and results from Edmunds API queries
46
Boy, Davie. “Grandma demanded the Civic VIP.” July 30, 2015.
www.edmunds.com/honda/civic/2004/consumer-reviews
30
praised his vehicle and then concluded his review by praising the manufacturer47, “Honda has

been very good at doing all the recalls and their service is excellent.” Another 2004 Pilot owner

is so committed to Honda that he/she mentions all the Honda vehicles he/she has purchased and

the minimal work that has been needed48, “This car has been subject to at least 3 Honda recalls,

one being the transmission issue. I will continue to drive it until the wheels fall off.”

Conclusion

Throughout the course of this paper, we were able to conduct analyses on the data to

answer questions regarding automotive recalls. Although the results from the data analysis were

insightful, the NHTSA data is limited and leaves a lot of questions unanswered. In order to

benefit from the results as best as possible, it required a great deal of background research into

the various data fields and what information they provide. This research provides a basis for

better informing vehicle consumers about what can be learned from automotive recalls.

However, this research paper focused specifically on informing customers regarding

decisions surrounding a particular recall in history, the Takata Airbag Inflator recall. Further

research can dive deeper into other recalls in automotive history or holistically evaluate different

recalls over the course of history.

Since starting this research project towards the end of 2016, NHTSA has greatly

improved their consumer facing website. This is the site users are directed to in order to learn

more about a recall notice they received or to research a particular vehicle or recall. The NHTSA

47
Cooke, Martin. My 2004 Honda Pilot EX”. April 6, 2016.
www.edmunds.com/honda/pilot/2004/consumer-reviews
48
“240K+ miles and still going strong!” April 26, 2015. ​www.edmunds.com/honda/pilot/2004/consumer-reviews
31
SaferCar site now allows users to view summary data pertaining to particular manufacturer

completion rates.

Previously existing features, such as searching for a particular recall, are easier to locate

and not buried deep in the site. However, the average consumer will not visit the website and

there is still further research to be performed regarding how to make users comply with recall

notices and be generally informed about manufacturer reputation.

Completion rates are still not as high as the government would like them to be. However,

improving the usability of the site and requiring digital notices in addition to the existing snail

mail notices49 are some of the tactics employed to increase completions rates. Future research

can dive deeper into ways to inform customers of the grave nature of the facts exposed in this

paper.

49
Beene, Ryan. “NHTSA proposes digital recall notices to increase repair rates.” August 31, 2016.
www.autonews.com/article/20160831/OEM/160839970

32
Appendices

Appendix A: Excerpt from Takata Airbag Recall Request Letter

33
Appendix B: Takata Recall Reminder Notice Received by my household for
2004 Pontiac Vibe ​[Note: Personal Information has been removed]

Page 1: Front of Postcard ​Page 2: Back of Postcard

Page 3: Inside of Postcard

34
Appendix C: Schedule for filing of Takata Airbag Recalls

35
Appendix D: Completion Rates by Year

Appendix E: Table of Deaths in U.S. Due to Defective Takata Airbag Inflator

in Honda Vehicles

36