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Can GM recover from its massive safety scandal?

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Can GM recover from its massive safety scandal?

Since February, when the automaker announced a 2.6 million recall of cars equipped with potentially deadly ignition switches, all eyes have been on General Motors.

And – to speak the plain truth – even more than scrutiny, the carmaker has been faced with probes and litigations. Leaving the federal investigations and class-action suits aside, the No.1 US automaker also had a huge drop in revenue – falling 85% during the second-quarter. That’s all related to the cost of the recalls – so far GM alone surpassed the latest record on total US automotive recalls for a whole year!

With north of 28 million vehicles recalled globally and pending compensations worth billions of dollars, many say the automaker could be hit for the last time – signaling the demise of a company that once ruled over worldwide sales like a Napoleon. Other analysts and observers are more (cautiously) optimistic, saying what the company really needs is a total culture makeover, one that would pull it out of Mary Barra’s own depiction of “a pattern of incompetence and neglect.”

The automaker has been focused for years on cost-effectiveness – effectively ruling out safety (among others) in the process. So, the company must firmly address the safety issues – which by no means are few. Then, totally change its corporate culture. According to many views, GM should take to new heights the safety and quality of its products and then focus on the customer – in order to recapture market and buyer trust.

by Aurel Niculescu (my Google+) - Monday, August 25th, 2014 - filed under General Motors, Industry, News. Image credit: .
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