When car models get recalled, how do the concerned companies stock millions of cars in a short timespan?
In: Economics
It’s very rare for an entire car model to be bought back.
Recalls are basically always just part replacements or software updates. If you own an affected car model, you will get a letter in the mail (They get your address from the car registration) telling you that a certain defect was found and that it needs to be corrected. You will be directed to contact you dealer to setup a time to fix it. And that’s it.
VW’s “Diesel gate” is the most recent example of a manufacturer having to buy back all of their affected cars. This was because they were manufacturing cars that did not meet emissions regulations in the US. They hid the fact by tweaking the software so it would run more cleanly when plugged into emissions testing machines.
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