What's the compensations / practice for car recall?

sunhux used Ask the Experts™
When japanese car maker recall their cars (specifically Toyota for the
hybrid Prius & CHR for the recent circuit & fire hazard), will the maker

a) take back to fix it (replace parts) & then return the car.  During this
    period of loss of use of the car, will the maker compensate with
    say taxi fare?

b) or refund the owner & if so, at what price?

c) how's the arrangement like?

Would like how it's practised in other parts of the world .
I'm assuming there's no accident/injuries incurred to the car owner.
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JohnBusiness Consultant (Owner)
Most Valuable Expert 2012
Expert of the Year 2018
In all my experiences, car makers repair deficiencies to required specifications and do not replace the vehicle. Arrangements are made with the local dealer.

Some jurisdictions have "lemon" laws for broadly defective vehicles that need replacing but that normally does not apply to the above.
Brian BEE Topic Advisor, Independant Technology Professional
In North America, a recall repair would be performed similar to how warranty work is done. In most places when you leave the car to get it fixed they will give you a ride somewhere and pick you up when the repair is done. If the job takes more than a day, they might provide you with a loaner car, but not unless you ask. That's about the limit of a voluntary recall. Things may be different if the government forces a company to do a recall.

(I had that exact thing happen yesterday. My car was in for a recall and the job takes 9 hours on the books. They were going to give me car to use overnight, but things were quiet and they were able to have two techs work on the car so it was done inside a day)

A refund or other compensation is rare, although if you read the press about the VW TDI scandal, you'll see it is possible.

The only time I've received money was from Hyundai because they falsely advertised the fuel economy ratings of the Elantra. I think it was $50 or something. That wasn't a recall though.
Distinguished Expert 2018
Generally that they will take the vehicle at any authorized dealership to make the necessary repairs to correct the issue. The time involved for the repair would probably dictate what options the dealership may offer (in terms of providing another car, etc). (Exactly how that's done in Singapore is something I wouldn't be able to help on)

If the potential problem at hand has already occurred AND you have record of it, there might be compensation that can be provided. You'd have to look into that.

I remember having an Acura where the exhaust manifolds were known to be faulty, and Honda extended the warranty to about 10 years. When I went for an inspection, I found out about it. The dealer said the work would take about 6-8 hours, so they provided me with a loaner car until the work was finished.

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