Finding a Better Way to Fix Software-Related Recalls

As the automotive industry hurtles forward into a future with an ever-increasing amount of software, it’s become clear that all automakers – whether they are the global American, Asian and German automakers we are all familiar with or the savvy startup manufacturers – will increasingly need to issue software-related recalls.

In a previous article, I examined the rise of software in the automotive industry and its impact on vehicle recalls from 1994 to 2023. In this article, I will look more closely at recent recalls and explore their implications – and will provide guidance on the actions automakers can take to address the challenges that come with software’s growing role in vehicles.

While software has been in vehicles since at least the early 1980s, it has become more pervasive since the mid-2000s. Many of the key features of modern cars are reliant on software, from fuel efficiency to infotainment.

Common Themes in Software Recalls in 2023

While Ford and Honda had the most overall recalls, with many related to physical problems such as airbags, wiring and fuel pumps, more than 5.8 million vehicles were affected by software-related recalls in the U.S. last year. Ford also tops the list of automakers affected by software recalls, though Tesla recalled more vehicles with a software remedy than Chrysler and Ford (No.2 and No.3) combined.

Tesla’s recall of more than 2 million of its electric vehicles to improve the safety of its Autopilot system was the largest – and highest-profile – software-related recall last year. While we expect software for assistive driving to get better over time, we also expect these types of assisted and automated driving issues to affect all manufacturers.

One of the technologies most commonly affected by software-related recalls is rearview cameras. In 2023, faulty camera software accounted for recalls covering more than 1.3 million vehicles, affecting manufacturers including Tesla, Chrysler, Ford, Volkswagen, Honda and Lucid.  

Most manufacturers source this component from Tier 1 suppliers. Embedded-software crashes and poor integration between the camera and infotainment software were common causes of recalls to address “no image” error screens.

Other than Tesla, most of the top automotive software recalls are dominated by Ford and Chrysler. That said, new entrants with smaller sales volumes were not immune. Lucid, Rivian, VinFast and Lordstown Motors all suffered from software-related recalls. Lucid, for example, had four recalls affecting potentially 2,990 vehicles. These recalls impacted somewhere between 25% and 50% of Lucid’s delivered vehicles.

OTA Updates Present an Opportunity for Convenience and Efficiency

One of the defining features and core benefits of software-defined vehicles is automakers’ ability to remedy software issues with over-the-air (OTA) updates, eliminating the need for drivers to visit a dealership. OTA updates did become more prevalent in 2023, led by Tesla, which remedied all software-related recalls with OTA updates. Last year, 24 out of the 41 software-related recalls announced by automakers – or more than half – could not be fixed by an OTA and still required customers to take their vehicles to a dealer to be fixed.

All too often, a software-related recall still requires intervention at the dealer, usually including replacing a part even though software is the only problem.

With OTA update capabilities, automakers have an opportunity to make the vehicle ownership experience more convenient while improving efficiency in service. However, the first step is to ensure software is updateable without requiring part replacement.

Opportunities to Improve Automotive Software

Reflecting on 2023’s automotive software recalls, it’s apparent that the industry is at a pivotal point in its evolution. The prominence of software in automotive design brings forth unique challenges. To foster innovation and take advantage of the opportunities that software enables, the industry must:

By concentrating on these critical areas, automakers can not only reduce risks but also drive the industry toward an era of enhanced, reliable and cutting-edge automotive software.

Todd Warren (pictured, left) is a senior advisor at Envorso, specializing in software strategy for the automotive sector.