By on July 3, 2014

General Motors headquarters in Detroit, Michigan

In today’s General Motors digest: GM recalls a recall; the automaker gains market share in spite of itself; its bankruptcy judge believes it may have committed fraud; the U.S. Senate gets ready for a second February 2014 recall hearing; and Anthony Foxx vows to keep the heat turned up on GM.

Detroit Free Press reports the automaker’s recall of the 2013 – 2014 Cadillac CTS over an ignition switch issue similar to the one affecting the 2010 – 2014 Chevrolet Camaro, as well as the issue that kicked off GM’s recall parade back in February, only affected 264 coupes and wagons assembled before the redesigned sedan left the factory floor; the sedan was incorrectly listed among the 8.4 million vehicles recalled worldwide Monday.

In spite of said recall parade, Automotive News says GM gained market shared in the first six months of 2014, jumping from 16.9 percent in January to 18.8 percent in June. Further, June 2014 sales climbed 1.2 percent to 1.42 million units — instead of falling 2.6 percent as some analysts had predicted — fueled by new models entering the showroom and more lease deals. In turn, the annualized selling rate rose to 16.98 million, the highest rate seen since July 2006, and one higher than 2013’s 15.9 million in the same period. GM hopes to keep up the pace by offering Cobalt owners and owners of other recalled vehicles a $500 incentive to trade-in for a certified used vehicle, and employee pricing on new models; so far, 21 percent of Cobalt owners have taken the automaker up on its offer between March and May 2014.

Meanwhile, Bloomberg reports U.S. Bankruptcy Judge Robert Gerber, who presided over the automaker’s bankruptcy proceedings in 2009, may have to haul GM back in on fraud charges if evidence is found, pointing to then-CEO Fritz Henderson’s possible knowledge — and obfuscation — of the ignition switch problem. Should the evidence be there, Judge Gerber could force the automaker to pay billions of dollars to any of the plaintiffs in the 90-plus lawsuits now waiting for his approval to proceed, which could come as soon as September 15.

Over in the Beltway, Reuters says a consumer protection and product safety subcommittee of the U.S. Senate Commerce Committee will hold a second hearing on the February 2014 recall July 17, though no announcement has been made as to who will be invited to testify as of this writing.

Finally, The Detroit News reports U.S. Transportation Secretary Anthony Foxx and the National Highway Traffic Safety Administration both vow to “keep putting the screws on [GM's safety efforts] until it gets right.” The agency, who is monitoring the automaker for the next three years as part of the latter’s settlement with the federal government, will look into the newest recalls to determine if GM issued them in a timely manner, though Foxx thinks the automaker is acting in good faith.

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3 Comments on “General Motors Digest: July 3, 2014...”


  • avatar
    Potemkin

    Just plain sad. GM can’t even get the recall right. If you are doing your job you know what parts went into what cars. The idiot that recalled the CTS is vintage old GM.

  • avatar
    Grunt

    One thing that pushed those numbers higher than forecasted was the big push to replace your DRAC units with new ones by giving you an additional $1000 on each unit you pull out and replace on top of the amount already paid. Dealer daily rentals are used primarily as loaners in the service department. They pushed everyone hard to do this, we did 11 or 12 ourselves. They count as sales to GM when we report the replacement unit but are actually still on the lot.

  • avatar

    dealers pay a company to summarize the nightmare of GM incentives. even they can’t keep it straight. GM marketing is a joke.

    “Please note that the sheets are shown as scheduled to expire on 07-07-14 due to a number of short term programs that are scheduled to expire on that date. The majority of programs are scheduled to run beyond 07-07-14. Watch for an additional message to be sent later today that will provide more details.

    “We apologize for the delay in sending updated sheets. It seems that every incentive cycle introduces more and more programs, revisions and changes than ever before. The sheets you are about to receive include 106 new GM Incentive messages, some of which were not even released by GM until late yesterday. We continue to receive changes to those programs this morning. Please understand that every possible effort is made to provide current incentive updates as soon as humanly possible.”


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