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General Motors Recalls 3 Million More


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General Motors has now added to list of recalls, tacking on 3 million more vehicles as of yesterday. This new addition of 3 million more cars has only added to the already wobbling list of defects pertaining to many of General Motor’s varying brand names. All of these cars are affected by the faulty ignition switches that keep calling the reliability and safety into question on the products released by General Motors.

The Newest Recall

The newest recall issued by General Motors affects roughly 3.36 million full-size and midsize cars globally. The issue tied to the faulty ignition switches can jar the running position out of sync that can potentially affects the power breaks, power steering, and the air bags. These issues are linked back to the General Motors confirmed 13 deaths which industry and safety analysts believe is closer to 75 related deaths and injuries. Earlier in the year roughly 2.6 million vehicles were recalled such as the Chevrolet Cobalt and other such small cars. Many congressional as well as company interior investigations have surmised that General Motor’s engineers had first discovered the faulty ignition switch issues more than a decade ago, but the company was slow on reacting to the issues. In what many have coined as corporate irresponsibility, many critics have stated that General Motors was more concerned with profit and not for the safety of their products and the customers they sell to. This newest recall comes only days before General Motors CEO Barra is due to testify for the earlier Cobalt recalls in front of Congress.

General Motors Recalls This Yeargeneral motors

General Motors has issued 44 recalls this year alone which has totaled out to about 20 million vehicles worldwide. That number is more than the total annual U.S. vehicle sales. Of all the recalls made by General Motors this year, roughly 6.5 million vehicles were recalled over faulty ignition switches which has also included more than 500,000 Chevrolet Camaros as of last Friday. The Manufacturer has raised the recall related charges for the second quarter from 400 million dollars to 700 million dollars. This newest change in the costs of the recalls has raised the recall related charges for the year up to about 2 billion dollars. That being said, sales continue to rise. Perhaps due to the brand image that has been portrayed to the public in recent months of a corporate responsible General Motors focused on the safety of their customers.

How the Recalls have Affected Sales

Surprisingly sales have risen to the highest levels since August 2008. Sales on many newer models have risen sharply as of may 2014 puzzling many consumers who choose not to buy from the General Motors family tree. Many who are questioning the rise in General Motor’s sales are wondering if the recent openness by General Motors and the firing of 15 employees might have reinstalled a sense of trust back into the public. The National Highway Traffic Safety Administration has stated that it would “monitor the pace and effectiveness” of the latest General Motors recalls. General Motors Barra has stated that she is looking to update Congress on the actions that the company has taken thus far and how corporate responsibility towards the safety of their products and their customers is of the upmost importance. Barra is also looking to show Congress that General Motors is looking to set up a compensation fund for the victims and their families that were affected by the crashes and setting up a structured program at the company in order to ensure that vehicles safety is at the highest point of importance for the company for the future.

 
The firing of the 15 employees may have given the company the leg to stand on in front of the public. While the public understands that these 25 employees are not the only ones to blame, but it has provided some pariah’s in which have become those to blame. With the government still suing the company over their lack of a timely response has continued to keep the public’s safety in clear view when regarding matters with this amount of severity. Another reason that the government may be so hostile when taking on General Motors could be the amount of Government agency fleets that are made up of cars and trucks produced by the company. With a customer as loyal and as big as the U.S. government, General Motors doesn’t have much a footing to argue against Congress with. And it is important not to forget that General Motors was a recipient of the government bailout of the auto industry, so the total disregard for the safety of their customers made by the upper management of General Motors has quite possibly not only damaged the reputation of the company but the longevity of business with the U.S. government.

 

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