Car Makers Look To Cut the Cost of Recalls: Kiplinger Economic Forecasts
Faulty software costs car makers $500m in recalls. What are they turning to and what could that mean for you?

The auto market is a mainstay of the economy, and a sector that generates significant interest whether from people looking for ways to buy cheap cars to affording luxury cars to getting the best car insurance rates. So to help, our highly-experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts (Get a free issue of The Kiplinger Letter or subscribe). You will get all the latest news first by subscribing, but we will publish many of the forecasts a few days afterward online. Here’s the latest forecast…
As faulty software becomes a more common reason for vehicle recalls, automakers are increasingly looking to save money with remote updates, which remove the hassle and cost of bringing a car to a dealership or mechanic.
In-person software updates for U.S. auto recalls cost half a billion dollars annually for car manufacturers, according to ABI Research. In 2022, nearly 10 million cars were recalled in the U.S. due to software-related issues.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Nearly half of those had to go to the dealership for an update. Automakers could save $1.5 billion by 2028 by shifting to over-the-air updates, says ABI Research.
Tesla leads the way with remote updates, but others, such as GM, aren’t far behind. Automakers also have big plans to profit from paid updates and self-driving features. For example, Tesla has a $100 monthly subscription for driver-assist features.
This forecast first appeared in The Kiplinger Letter. Since 1923, the Letter has helped millions of business executives and investors profit by providing reliable forecasts on business and the economy, as well as what to expect from Washington. Get a free issue of The Kiplinger Letter or subscribe.
Read more
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
The Kiplinger Letter editors are a team of seasoned reporters and editors who specialize in different subject areas. They uncover emerging trends and foresee future developments that will affect the economy, financial markets, specific industries, and ultimately, your business, investments and financial affairs. For over a century the Kiplinger Letter's team has provided concise weekly forecasts on business and economic trends, as well as what to expect from Washington.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market Today
Tech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
The Shutdown Standoff Is Heading for Its Next Big Test
A key mid-October deadline could intensify the shutdown fight in Washington, and the fallout could soon hit workers and your wallet.
-
Apple Readies for AI Upgrade with New iPhones
The Kiplinger Letter The tech giant has stumbled when it comes to artificial intelligence, but a new batch of iPhones will help it make headway.
-
Japan Enters a New Era of Risk and Reform
The Kiplinger Letter Japan has entered a pivotal moment in its economic history, undertaking ambitious policy and structural reforms to escape from decades of stagnation.
-
How Consumers Are Tinkering with Cutting-Edge AI
The Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU Economy
The Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Small Businesses Are Racing to Use AI
The Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
How AI Puts Company Data at Risk
The Kiplinger Letter Cybersecurity professionals are racing to ward off AI threats while also using AI tools to shore up defenses.
-
Trump's Economic Intervention
The Kiplinger Letter What to Make of Washington's Increasingly Hands-On Approach to Big Business
-
AI Start-ups Are Rolling in Cash
The Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.