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GM close to ending stream of recalls?

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GM close to ending stream of recalls?

The No.1 US automaker has been on a recall spree this year, triggered by the utter failure to address the deadly ignition switch problem – which in turn caused the cascade of callbacks and federal investigations.

February was the turning point in GM’s recall history – it was then when they issued the 2.6 million recall of small cars tied to the defective ignition switch. From then on, the company vowed to address all safety issues, and if only numbers would tell the story, we could say it thoroughly delivered. It’s close to the 30 million vehicles mark, of which almost 26 million in the US alone.

Now, General Motors CEO Mary Barra and her executives are hinting the mayhem could be over soon – as the company would then move to address other problems – like how to service the incredible number of cars, or more importantly how to duly compensate the recall victims through its newly established victims compensation fund.

“GM concluded its enhanced product safety review that has led to a significantly elevated pace of vehicle recalls,” said JP Morgan auto analyst Ryan Brinkman.

Since February, GM announced 54 separate recalls, which averages to nine per month, while the automotive industry as a whole stands to consider 2014 the year of the recall. Besides GM’s problems, the automakers in the US also issued their own recalls, which led to a tally of around 40 million in America alone – with another major issue, the Takata airbag debacle, hot in the news.

by Aurel Niculescu (my Google+) - Tuesday, July 8th, 2014 - filed under General Motors, Industry, News, Safety. Image credit: .
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