In recent years, auto manufacturers have been plagued withexpensive product recalls, along with the litigation and PRnightmares that invariably ensue.

Toyota Motor Co., for one, is still reeling from a slew ofmechanical issues that have impacted its global operationsduring the last 3 years. In Oct. 2012, the manufacturer recalled2.5 million vehicles sold in the U.S., citing potential fire risks,only to later announce a staggering $1.1 billion settlement inDecember to resolve lawsuits stemming from “unintendedacceleration” mishaps in certain Toyota and Lexus models.

Surprisingly, the unintended acceleration recall, even in itsenormity, ranks only sixth on the National Highway Traffic SafetyAdministration's (NHTSA) top ten listing of the largest automotiverecalls of all time.

Clearly this doesn't bode too well for consumer confidence orfor the P&C insurance carriers extending coverage to theseprecarious rides.

A Manufacturer's Compunction

Last year, another public relations crisis fell squarely onthe shoulders of General Motors (GM), who, on Jan. 5, 2012,announced the recall of all Chevrolet Volts sold in the UnitedStates—about 8,000 vehicles in total. In addressing the Volt'salleged post-crash fire susceptibility, GM plans to beef up theprotection around the battery pack and initiate other changes.

According to GM executives, a federal probe into three fires inVolt battery packs following crash tests prompted themodifications, although the automaker had supposedly received nocomplaints from Volt owners.

NHTSA reported that a Volt battery pack had smoked and caughtfire more than 3 weeks after a side-impact test where the car hadcollided with a pole at 20 miles per hour. At the time, GM insistedthe Volt was indeed safe, asserting the agency “had not followedthe [recommended] procedures for discharging the battery followinga crash.” Had NHTSA officials followed the guidelines set forth bythe manufacturer, GM contended, there would have been no incidenceof fire.

See the related slideshow:Investigating Automotive Battery Explosions

Nonetheless, possibly fearing public backlash inthe form of dwindling sales, GM pledged to make thousands ofVolts safer, even though the repairs did not then qualify as anofficial federal safety recall—meaning the company was ostensiblyunder no obligation to act. The Volt recall involved adding severalcomponents, including: steel plates around the battery pack; asensor to monitor coolant levels for the battery's temperaturecontrols; and a cap to prevent coolant overfilling.

Because no official federal safety recall had been issued, GMwas able to continue selling Volts while it produced the necessarycomponents.

One would have hoped that 2013 would bring a much-needed respitein the world of auto defects. Unfortunately for Honda, thathas not been the case so far. After having the second-highestnumber of recalls for any auto manufacturer operating inthe U.S. market, Honda announced last week that it will recallnearly three-quarters of a million vehicles for an airbag issue.Specifically, Honda has recalled 748,000 Pilot crossover Odysseyminivans sold in the U.S. and then another 29,000 sold inCanada.

According to a press release, Honda identified missingrivets as the culprit, explaining the deficiencycould compromise the proper deployment of driver's sideairbags in the event of a crash.

At this rate, perhaps Nader will consider a follow-upto Unsafe at Any Speed. Let's certainly hope not.