GM’s executives say recall didn’t hurt sales image

While the company is facing a huge scandal and probes from NHTSA and the US Congress over the way it dealt with the defective ignition switch recall, its executives say the crisis is not lowering sales.

Separately, GM’s CEO Mary Barra, Cadillac’s chief marketing chief, Uwe Ellinghaus and product chief Mark Reuss, asked about that on the sidelines of the New York auto show, all agreed.

“We’re really not seeing people’s interest wane,” Reuss told reporters on the eve of the first press day of the show. “It really is all about the product and the price and the value.”

“So far, we have not seen any decline in our Cadillac business due to the negative news about the recall,” Ellinghaus said. “People distinguish between brands and the corporations behind the brands. Therefore, I’m not surprised, speaking from Cadillac, that we didn’t see this.”

While the public attention on the recall has so far overshadowed GM’s new cars that were showcased at the New York Auto Show, the recall of Chevrolet and Saturn small cars didn’t seem to hurt much last month’s sales.

All executives stay positive on the matter and comment that although NHTSA and the Congress opened probes on the company, the “new” GM is much faster to react and pointed out they’re working on repairing all the problems – both with the 2.6 million recalled cars and with the company.