Starting with the scandalously late recall of 2.6 million cars equipped with defective ignition switches, General Motors has reached an unprecedented tally for models called back in for service, but the sales could go on unaffected.
Investors and some experts alike fear that US consumers could decide to punish the slew of recalls with dwindling showroom visits, but – even though we won’t know for sure until May’s numbers come out – the news could be good for GM.
Last month, when GM was overwhelmed with “bad” news from every corner, the Chevrolet, Buick/GMC and Cadillac dealers still reported the sales are up 7% over last year’s month, when the sales were already growing at a good pace.
For consumers, many logics behind GM purchases could apply – like the fact that now it’s the safest time to buy one of their cars – everyone is now overlooking the safety issues, so most likely the new cars would come way cleaner.
Then, there’s the fact that recalls are a part of the everyday life of the US automotive industry – they’re so common that many would take them for granted and as a sign of a healthy company.
Also, dealerships are looking up to the customers bringing their cars in for repairs – many of them are old and so the prospect of a new car purchase looms heavy – which is great news for the sales persons.