Megan McArdle, over at Bloomberg View, wonders out loud if the flood of recalls issued by General Motors, covering every car they’ve sold for the past three years and a wide swatch of the vehicles the company has made and sold over the past decade and a half is a deliberate strategy on the part of the company to protect its image with consumers from further harm. The strategy may be working. The sales reports for June show that the current sales of new GM vehicles seems to be unaffected by all of the publicity and controversy surrounding defective ignition switches that can shut off the car, rendering the airbag systems inoperable in case of a subsequent collision. (Read More…)
Poor Suzuki. Even as it tries to make a graceful exit from the U.S. market, they get mired in the latest round of General Motors recalls.
Over at Jalopnik, Patrick George has uncovered an internal Powerpoint that sets out very clear guidelines for how recalls and other quality problems should be discussed. GM’s communications team has been prone to awkward outbursts before, but this takes things to an almost Orwellian level.
General Motors has issued a new recall for 355 vehicles, while also facing a possible lawsuit by an investor over “immorality”. GM may also face a new probe involving the automaker’s bankruptcy and its relation to the original recall that thrust GM into the headlines, just as the agency responsible for investigating the problem at GM faces an audit from the Department of Transportation.
General Motors, in the midst of a 1.6-million vehicle recall involving a faulty ignition switch discovered a decade earlier — and the resulting silence until late February of this year — must now answer a 107-question survey issued by the National Highway Traffic Safety Administration about the recall by April 3.
The years-long silence over a faulty ignition switch responsible for 13 deaths and a recall of 1.6 million vehicles made between 2003 and 2007 is about to take a greater toll on General Motors executives as federal investigations, lawsuits and penalties loom over the horizon.
Originally affecting 780,000 2005 – 2007 Chevrolet Cobalts and Pontiac G5s, General Motors has now added another 588,000 vehicle in a recall to fix ignition switches that can lead to the engine being shut off. So far, 31 crashes and 13 front-seat deaths have been linked to the issue.
Barring a last minute campaign from another manufacturer, Toyota will be number one in recalls on the American market for 2013. This will be the second year in a row that Toyota has topped the recall rankings. Since the 2009 sudden unintended acceleration controversy, Toyota has led the nation in recalls every year except 2011.
After consumer complaints over quality issues in its home market of Korea and a string of recalls there, in the U.S. and other countries. Hyundai Motor Group’s president for research and development, Kwon Moon-sik and two other executives in charge of engineering and electronics have resigned. The shakeup comes as the automaker prepares some important new vehicle launches.