Is GM's Recall Mania More Corporate Blundering or a Strategic Move?

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.

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GM's Recall Mania Hits Suzuki

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.

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Open Thread: GM's Newspeak, Or How Culture Defines A Company

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.

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GM Rallies Rentals, Braces For Further Investigation

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.

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GM Receives 107-Question Survey Over Ignition Recall

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.

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Ignition Flaw Fallout Grows For GM

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.

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GM Adds 588,000 Vehicles To Ignition Recall

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.

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Toyota Set to Be #1 in Recalls for Fourth Time in Five Years

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.

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Hyundai's R&D, Product President, Engineering and Electronics Chiefs Resign Over Quality Issues

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.

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2013 – 2014 Camaros Recalled Due to… Stickers?

If you’re one of the few, proud owners of the slightly angrier-looking 2014 Camaro, or one of the many to own the slightly less angry 2013 model, you may need to send it back to correct a problem. No, not spiders this time. The recall is about stickers. That don’t stick.

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Toyota Recalls 870,000 Units Due To Arachnophobia

One blah Monday morning, you’re commuting to the anonymous office park some 90 minutes away from the bedroom community you call a home in your equally anonymous Toyota Camry Hybrid, listening to yet another story about Congress kicking cans down roads and/or some wacky antics your favorite DJs had the past weekend while you take another swig of that mermaid-branded caffeinated goodness.

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NHTSA Opens Preliminary Investigation Into Jeep Grand Cherokee Headliner Fires

Issues about fire safety continue to affect the Jeep brand as the U.S. National Highway Traffic Safety Administration announced today that it is opening an investigation into 146,000 2012 model year Grand Cherokees, after receiving reports from three consumers who say that the headliners of their cars caught fire near the passenger side sun visor.

“The customers reported a burning odor and visible smoke coming from the headliner while the vehicle was being driven. This was followed by flames from the headliner itself. Customers lowered the windows in an effort to clear the smoke but this increased the fire’s intensity. All three vehicles had to be extinguished with a fire extinguisher or by the fire department as they continued to burn after the vehicle was turned off . The fire also caused the sunroof to shatter in one incident, and in another, the fire spread to the passenger seat when the burning sun visor fell onto the seat. In each case, the incident resulted in the vehicle being inoperable requiring it to be towed to the dealership.”

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NHTSA Administrator Says Compliance With Standards At Time of Production Not Enough

In an interview with Automotive News (registration required), National Highway Traffic Safety Administration director David Strickland said that if automakers want to keep their cars and trucks from getting recalled, those cars must not just meet standards in effect at the time vehicles are produced, but that the car companies must also make sure they stay as safe, statistically, as competitors’ products that use different designs.

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Does BMW Have a Fire Safety Problem With All of Its Brands' Turbos? 2,916 More Non-Chevy-Volts Recalled For Fire Hazard

It hasn’t gotten nearly as much attention as the handful of early production Tata Nanos that caught fire, or the Ferrari 458 recall, also for fire safety issues, or the newly expanded investigation into Jeep Wranglers burning, and certainly not nearly the attention given the near non-event with that one crash tested Chevy Volt, but BMW appears to have a corporate wide fire problem with turbocharged models that has now resulted in recalls of BMW, MINI and Rolls-Royce vehicles.

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Automotive Lawsuit History Unearthed, Junkyard Style: The Ford Park-To-Reverse Warning Label

For decades, I’ve been seeing Ford-family vehicles with ugly, pointless warning labels stuck to their instrument panels: Unexpected and possibly sudden vehicle movement may occur if these precautions are not taken. I’d always assumed that these were ex-rental cars, but after I mentioned the warning stickers in this week’s ’75 Ford Maverick Junkyard Find post, several readers pointed out that the stickers were the result of Malaise Era litigation. Of course!

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  • Kmars2009 I rented one last fall while visiting Ohio. Not a bad car...but not a great car either. I think it needs a new version. But CUVs are King... unfortunately!
  • Ajla Remember when Cadillac introduced an entirely new V8 and proceeded to install it in only 800 cars before cancelling everything?
  • Bouzouki Cadillac (aka GM!!) made so many mistakes over the past 40 years, right up to today, one could make a MBA course of it. Others have alluded to them, there is not enough room for me to recite them in a flowing, cohesive manner.Cadillac today is literally a tarted-up Chevrolet. They are nice cars, and the "aura" of the Cadillac name still works on several (mostly female) consumers who are not car enthusiasts.The CT4 and CT5 offer superlative ride and handling, and even performance--but, it is wrapped in sheet metal that (at least I think) looks awful, with (still) sub-par interiors. They are niche cars. They are the last gasp of the Alpha platform--which I have been told by people close to it, was meant to be a Pontiac "BMW 3-series". The bankruptcy killed Pontiac, but the Alpha had been mostly engineered, so it was "Cadillac-ized" with the new "edgy" CTS styling.Most Cadillacs sold are crossovers. The most profitable "Cadillac" is the Escalade (note that GM never jack up the name on THAT!).The question posed here is rather irrelevant. NO ONE has "a blank check", because GM (any company or corporation) does not have bottomless resources.Better styling, and superlative "performance" (by that, I mean being among the best in noise, harshness, handling, performance, reliablity, quality) would cost a lot of money.Post-bankruptcy GM actually tried. No one here mentioned GM's effort to do just that: the "Omega" platform, aka CT6.The (horribly misnamed) CT6 was actually a credible Mercedes/Lexus competitor. I'm sure it cost GM a fortune to develop (the platform was unique, not shared with any other car. The top-of-the-line ORIGINAL Blackwing V8 was also unique, expensive, and ultimately...very few were sold. All of this is a LOT of money).I used to know the sales numbers, and my sense was the CT6 sold about HALF the units GM projected. More importantly, it sold about half to two thirds the volume of the S-Class (which cost a lot more in 201x)Many of your fixed cost are predicated on volume. One way to improve your business case (if the right people want to get the Green Light) is to inflate your projected volumes. This lowers the unit cost for seats, mufflers, control arms, etc, and makes the vehicle more profitable--on paper.Suppliers tool up to make the number of parts the carmaker projects. However, if the volume is less than expected, the automaker has to make up the difference.So, unfortunately, not only was the CT6 an expensive car to build, but Cadillac's weak "brand equity" limited how much GM could charge (and these were still pricey cars in 2016-18, a "base" car was ).Other than the name, the "Omega" could have marked the starting point for Cadillac to once again be the standard of the world. Other than the awful name (Fleetwood, Elegante, Paramount, even ParAMOUR would be better), and offering the basest car with a FOUR cylinder turbo on the base car (incredibly moronic!), it was very good car and a CREDIBLE Mercedes S-Class/Lexus LS400 alternative. While I cannot know if the novel aluminum body was worth the cost (very expensive and complex to build), the bragging rights were legit--a LARGE car that was lighter, but had good body rigidity. No surprise, the interior was not the best, but the gap with the big boys was as close as GM has done in the luxury sphere.Mary Barra decided that profits today and tomorrow were more important than gambling on profits in 2025 and later. Having sunk a TON of money, and even done a mid-cycle enhancement, complete with the new Blackwing engine (which copied BMW with the twin turbos nestled in the "V"!), in fall 2018 GM announced it was discontinuing the car, and closing the assembly plant it was built in. (And so you know, building different platforms on the same line is very challenging and considerably less efficient in terms of capital and labor costs than the same platform, or better yet, the same model).So now, GM is anticipating that, as the car market "goes electric" (if you can call it that--more like the Federal Government and EU and even China PUSHING electric cars), they can make electric Cadillacs that are "prestige". The Cadillac Celestique is the opening salvo--$340,000. We will see how it works out.
  • Lynn Joiner Lynn JoinerJust put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?
  • Lynn Joiner Just put 2,000 miles on a Chevy Malibu rental from Budget, touring around AZ, UT, CO for a month. Ran fine, no problems at all, little 1.7L 4-cylinder just sipped fuel, and the trunk held our large suitcases easily. Yeah, I hated looking up at all the huge FWD trucks blowing by, but the Malibu easily kept up on the 80 mph Interstate in Utah. I expect a new one would be about a third the cost of the big guys. It won't tow your horse trailer, but it'll get you to the store. Why kill it?