ADS urges service managers to see beyond the inconvenience of recall work and embrace long-term customer value
In the high-pressure environment of dealer service departments, safety recalls are often treated as an unwelcome distraction. But according to data consultancy ADS (Auto Data Systems), this short-term mindset is fuelling a systemic failure—one that leaves millions of vehicles unchecked and represents a staggering missed revenue opportunity for franchise dealers.
ADS is currently conducting an industry-wide investigation into why as many as a third of cars recalled for safety issues are never brought in for rectification. Their findings point to two main culprits: active resistance among service teams and a narrow, short-term focus on workshop profitability.
At the heart of the issue is what ADS calls “tunnel vision”—a tendency among workshop managers to fixate on the job in front of them, without recognising the wider commercial and safety implications of ignoring recall work.
“Our consultations reveal several unspoken secrets behind the missed recalls,” explains Jon Sheard, Operations Director at ADS. “Yes, recalls can be inconvenient and less profitable. But they also offer a rare opportunity to reconnect with lapsed customers who are often servicing their vehicles elsewhere.”
A Hidden Cost
ADS estimates that more than three million vehicles remain on UK roads with unresolved recall issues—a number that continues to rise. Their analysis suggests that for some specific recalls, up to one in three cars go unrectified.
While OEM reimbursement policies are partly to blame—offering minimal labour allowances for what can become complex procedures—the reluctance to prioritise recalls also stems from internal pressure to maximise retail revenue. In some cases, tasks billed by manufacturers as 15-minute jobs have taken over an hour due to seized bolts or difficult access on older models.
The trade-off between higher-margin retail bookings and low-margin recall work has led many managers to underbook or deprioritise recall appointments entirely. But ADS argues that this mindset misses the larger opportunity: customer re-engagement.
The £100 Million Blind Spot
ADS’s data shows that the average additional spend by a lapsed customer who returns for a recall visit is £309. Multiplied across the sector, this represents more than £100 million in lost annual revenue for franchise dealers.
“It’s easy to see recall work as a drain on resources,” says Sheard. “But when handled strategically, these appointments are among the most powerful tools available for rebuilding lost relationships and driving long-term loyalty.”
The issue is compounded by poorly maintained customer databases, which make recall communication difficult and reduce the effectiveness of follow-up strategies. ADS notes that many service departments still lack robust systems for identifying and contacting customers who have dropped off the radar.
Reframing Recall Work
While warranty repairs are similarly low-margin, they’re widely accepted as a standard part of aftersales operations. ADS is urging dealers to adopt a similar mentality toward recalls, reframing them not as a nuisance, but as a customer retention opportunity.
To support this shift, ADS will publish a set of practical recommendations later this summer, based on extensive consultations with dealers, OEMs, and workshop managers. These guidelines aim to address the cultural and operational challenges that have led to what ADS describes as a “systemic failure” in customer engagement strategy.
A Call for Change
For now, ADS’s message is clear: the industry can no longer afford to treat recall work as a low-priority task. Safety is only one part of the equation. The bigger picture includes the significant revenue potential and customer loyalty that can be unlocked by simply re-engaging the right people at the right time.
“In today’s market, no dealership can afford to overlook the long-term value of customer retention,” Sheard concludes. “Recalls aren’t just about fixing faults—they’re about fixing relationships.”
