Automakers lose $900 million in recalls

3 million vehicles estimated to have been recalled for software-related issues in 2021, eSync Alliance calls on auto makers to accelerate OTA update deployment.

Automakers lose $900 million in recalls

3 million vehicles estimated to have been recalled for software-related issues in 2021, eSync Alliance calls on auto makers to accelerate OTA update deployment.

Auto makers lose $900 million in recalls due to inadequate over-the-air update capability

  • More than 3 million vehicles estimated to have been recalled in the USA and Europe for software-related issues in 2021, OTA updates could have mitigated the need
  • Twice as many vehicles expected to visit dealerships for software-related recalls in 2023
  • eSync Alliance calls on auto makers to accelerate OTA update deployment
  • “The industry is in desperate need of a standardized OTA platform that is accessible to all OEMs and suppliers. eSync is the solution.” Mike Gardner, Executive Director

Silicon Valley, CA, March 9, 2023 – Auto makers are losing more than $900 million per year in the USA and Europe due to physical recalls that could be performed via over-the-air (OTA) software updates. The eSync Alliance, which conducted the research, is calling on auto makers to step up their deployment of OTA updates, by using a standardized, industry-proven platform.

The data, sourced from government recall databases, demonstrates the need for OEMs to accelerate the adoption of OTA and suggests that the problem is getting worse. In the US, 1.59 million vehicles were physically recalled for updates to software in 2021, however in the six months to February 2023, 1.7 million cars were affected. Based on these figures, eSync predicts that the number of vehicles visiting a dealership for a software recall will at least double this year compared to 2021.

While data on the number of vehicles impacted by software recalls is harder to obtain in Europe than in the USA, research by eSync suggests that more than 3 million vehicles will have been recalled in the two markets, without the option of conducting remedial work using OTA. This is due to the fact that, while a typical car may contain more than 100 ECUs, very few of them are OTA compatible, meaning updates do not reach all areas of the vehicle.

Mike Gardner, Executive Director of eSync Alliance, said: “This analysis shows that automakers continually throw away good money as a symptom of their proprietary OTA platforms not being fit for purpose. The industry is in desperate need of a standardized OTA platform that is accessible to all OEMs and suppliers. eSync is the solution.”

Used in millions of vehicles around the world, eSync has the power to save auto makers and the supply chain millions by offering the only standardized OTA bi-directional data pipeline that is proven for remote software updates, diagnostics, and telematics. OEMs can access an easy, effective, and secure platform that is ready to be integrated into vehicles. Tier one suppliers are not required to spend time and resource re-engineering their product to meet a multitude of different OTA protocols.

The system is also easily repeatable following its first vehicle integration. OEMs can save up to 60% in cost and time in implementing subsequent deployment.

“eSync provides auto makers with the potential to reach all systems within a vehicle,” Mike added. “In achieving a global standard, we’re democratizing OTA, bringing it to production vehicles sooner and giving all Tier-1s a chance to play a part in the connected vehicle ecosystem.”

To find out more about the power of eSync, visit: www.esyncalliance.org

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