Eversheds comment: Mazda recall

• United Kingdom
• Global

01-09-2016

Commenting on news that Mazda is recalling 2.2 million vehicles over fears of corrosion, Peter Shervington, expert in product liability at Eversheds, says:

"Recalls in the automotive sector are not uncommon: 51 million vehicles were recalled in the US alone last year. However, a recall of 2.2 million vehicles is a serious undertaking for any manufacturer. It is not only the direct costs of contacting vehicle owners, communicating with regulatory authorities around the world and disseminating information through dealer networks. In the long term, the impact on brand reputation and investor confidence can be much greater, and needs to be carefully managed, particularly since this follows another major recall by Mazda in May arising from the Takata airbag debacle.

"Like all responsible car makers, Mazda will be concerned to show that it takes its responsibilities seriously. Whilst there will no doubt be difficult questions posed within the business as to how paint could have been wrongly applied to tailgates over a period of more than seven years, the decision to take action now, before any accidents or injuries are reported, will help to mitigate the impact on its brand, and demonstrate that the business is putting consumer safety first.”

• Peter Shervington
• Principal Associate
• +44 113 200 4043
• +44 113 200 4043

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