You don’t have to wait long for another major car brand to announce a recall of one of its models for safety reasons. These notices appear to happen with such frequency that you might conclude there is some form of contagion at work within the car world.
There is statistical evidence to suggest that instances of recalls have increased over time and, conversely, that we are also more aware of their existence than ever before because of the amplifying nature of our digital world, with recall notices getting trafficked and commented upon on social media, as well as being reported in traditional media. Both things can be true, especially now that manufacturers operate in an era where quality and customer experience have become so important.
The idea of a “Friday car” – the derogatory term that was once used to describe what customers believed were defective cars built in haste as workers rushed out of factories for the start of the weekend – is a relic from the less automated past.
It is also true, however, that we are living in a peak recall era, with more problems being identified on what are, in theory at least, cars manufactured to a higher standard than ever before.
In January, Tesla made global headlines over the recall of more than 1.6 million vehicles in China to fix automatic driver assistance steering and door latch controls. The same manufacturer recalled multiple vehicles in the US last year.
One recent advertising notice published in The National requested the recall of about 2,000 Honda cars registered in the UAE because of “improper manufacturing of stamped metal parts inside the front seat belt buckle”.
Customer reactions to present-day recalls tend to exhibit a range of emotions from a shrug of the shoulders to outright indignation
Last year, Ford’s Territory SUV was recalled in small quantities in the UAE for inspection of the welding between the steering column bracket and the cross car beam. In 2022, General Motors recalled 6,000 SUVs in this country to check the fitting of seat belts in the third row of seats. More than 1,000 Jeep SUVs were ordered back to UAE dealers to check the marque’s emergency alert system.
The list could go on and almost every manufacturer is likely to recall at least some of its vehicles.
Naturally, the news of the major Tesla recalls will have travelled farther than some others because of the number of owners they affected, as well as other contributory factors, such as the high-profile nature of the firm’s CEO, Elon Musk.
Similarly, people are likely to remember historic large-scale recalls by Ford and Toyota from decades ago because they involved so many vehicles and that recalls were not perceived as being commonplace in years gone by.
Customer reactions to present-day recalls tend to exhibit a range of emotions from a shrug of the shoulders to outright indignation, with owners seeking to make sense of such an intervention by using it to confirm their own biases about a brand, for better or worse.
Recalls are, inevitably, a source of hassle, triggering an often-unwanted trip to the dealer.
Some customers will also worry about the potential damage that these recalls may have on market perceptions or resale values. Investors will speculate about what a mass recall will do to that manufacturer’s share price. Negative sentiments tend to be quick to coalesce around a brand, even though recalls are unlikely to have an instant financial cost to the customer.
There is another way of looking at this issue, however.
The existence of a widespread recall culture in the car industry may be positive, demonstrating that in-country regulatory frameworks are strong and that car makers are more willing to address failure and defects than previously, even if a lot of that process may be driven by compliance rather than curiosity.
Now consider the recent convulsions experienced in the aviation industry by Boeing.
The company has been accused of overlooking safety concerns after two fatal 737 Max crashes. This week its outgoing CEO, Dave Calhoun, apologised for the organisation’s failures at a US Senate hearing that was described as a “moment of reckoning” for the firm and its broader culture. Relatives of the deceased are demanding Boeing is fined billions of dollars.
The aviation sector’s historical approach to accidents, as well as its regulatory use of black boxes – whereby every problem is analysed and faults scrutinised and eradicated – has traditionally been the envy of other industries. This approach combined high levels of oversight with a culture of learning and improvement.
Boeing’s recent problems, compounded by the admission of the Federal Aviation Authority that it was too “hands-off” in the aftermath of the emergency on-board the Alaska Airlines Boeing 737 Max 9 flight earlier this year, show how the certainties of the past can be swiftly unwound.
When viewed in that context, although many will fret about a recall notice for their car, the fact that it has been triggered may indicate greater transparency within the industry and a broader willingness to tackle defects in the interests of safety. The alternative is to sweep problems under the carpet, and no one would advocate that as decent policy prescription.
Some customers will also ignore recall notices or wait for months until the next scheduled trip to the dealer. Compliance is painful at times, but is necessary, too.
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Griselda
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ARGENTINA SQUAD
Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez
SPECS
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PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Book%20Details
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COMPANY%20PROFILE
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Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now