@Risk

Two weeks ago, the Toyota recall put the spotlight on supplier collaboration.

Now, Ford has announced that it will update brake-related software on its 2010 Ford Fusion Hybrid and Mercury Milan Hybrid, and there are new questions about the safety of 2009 – 2010 Toyota Corollas and 2005 – 2009 Chevrolet Cobalts.

In short, what seemed at first to be an isolated brake problem has mushroomed into something more. Now, it appears that vehicle manufacturers (VMs) are awakening to the potential dangers of the increasing electronics and software content in today’s cars.

Many electronic automotive technologies (the advanced driver assistance systems (ADAS) and anti-lock brake systems (ABS), e.g.) have long been perceived as safe and dependable.  But, the recent recalls have made me wonder, could we now have a case where cars have too much of a good thing?

“While electronics has increased efficiency and passenger comfort, it has also exposed the consumers to higher risk of accidents and VMs to painful recalls costing millions of dollars. It has also caused an inordinate blow to trust that countless consumers have bestowed on the car maker,” says Krishnasami Rajagopalan, Frost & Sullivan’s Global Program Manager – Chassis, Safety & Driver Assistance Systems Group. “The consequences of the recalls will have repercussions not only for VMs, but also for electronic system suppliers and regulators who have been slow to act on consumer complaints about vehicle electronics. Until this problem is sorted out amicably and trust restored, consumers are likely to sit apprehensively in their cars surrounded by electronics they no longer trust.”

I think it’s likely that we’re going to see stricter enforcement, review and testing of vehicle electronics. (Many would say those move are long overdue.) Of course, increased regulation also means increased liability issues for suppliers –and price increases for consumers.