GM recalls don’t seem to affect sales image

While General Motors is navigating its worst public scandal in recent years due to the very late recall of cars with ignition switch defects, and while it’s on a recall spree, dealers are though optimistic.

The company has issued a historic number of recalls so far – and it looks set to continue as it peers through data to find hidden defects – but according to estimates from forecasters the sales this month could beat the industry’s average growth, while dealers interviewed by Reuters look optimistic.

According to US dealers, safety fears of customers have started to dissipate, with the slew of recalls, 29 so far this year, with 15.8 million vehicles globally, seem to make buyers confident the company is now putting safety first.

“There are still a few customers concerned about safety, but GM has really stepped up to the plate,” said Texas dealership Ancira Motor Company Vice President April Ancira.

While investors look more worried now than dealers and customers, with the stock falling 20% so far this years – due mainly to the huge $1.7 billion charge related to recalls; LMC Automotive reports GM’s total retail sales until May 19 increased by 3.5% from the same month last year, while industry average was of only 0.5%.

Via Reuters