Customer satisfaction campaigns, also known as secret warranties or silent recalls, is a practice used by automobile manufacturers to correct relatively minor issues that could affect driver’s comfort or the vehicle’s appearance. Instead of dealing with thousands of customers, the manufacturer deals with complaints on a case by case basis. In many cases, those who are unaware that a satisfaction campaign exists, end up paying for the manufacturing mistake.
According to the Center for Auto Safety (CAS), an estimated 500 customer satisfaction campaigns are in operation at any time with numerous examples of automakers using them to repair defects in steering systems, headlights, airbags and other components that might contribute to injuries or deaths.
GM, for example, has repaired thousands of Volts through at least eight customer satisfaction campaigns. The repairs included reinforcing the battery pack and improving the battery coolant system after a government crash test resulted in a fire. Because the fire was not determined to be a safety defect, and not labeled as a recall, customers were not notified and it is unknown how many were fixed. Documents filed by GM show that at least six of its 65 recalls this year relate to previous, lesser field actions, and at least two recalls were initially proposed to be customer satisfaction campaigns.
In March, NHTSA closed an inquiry into 1.6 million Ford Escapes, Fusions and other vehicles after Ford Motor Co. started a customer satisfaction campaign for engine throttle problems that generated nearly 12,000 complaints. Last year, the agency closed an investigation into sticky accelerators after Ford agreed to a campaign covering throttle cables on nearly half a million Taurus and Mercury Sable sedans.
“There is no sharp line between a service campaign and a safety recall,” according to Clarence Ditlow, executive director of the Center for Auto Safety. “The $1.2 billion penalty imposed on Toyota over unintended acceleration, multiple ongoing investigations of GM’s ignition recalls, and a greater scrutiny by regulators, will encourage automakers to use recalls for cases in which they may have have used customer satisfaction campaigns in the past. I think we’re going to see more safety recalls and fewer service campaigns, but unfortunately the service campaign is never going away.”
Note: Five states — California, Connecticut, Maryland, Virginia and Wisconsin — have “secret warranty” laws requiring automakers to provide written information about campaigns to owners and government officials.
