Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Connect with us

Hi, what are you looking for?

slide 3 of 2
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Documents Show Another Delayed GM Recall

Photo Credit: Rebecca Cook Photo Credit: Rebecca Cook
Photo Credit: Rebecca Cook Photo Credit: Rebecca Cook

As long as you haven’t been living under a rock for the past few months, then you know that saying General Motors is in hot water is an understatement. GM has admitted to knowing that millions of their cars had faulty ignition switches which could cause the car to unexpectedly lock up, leaving their drivers completely helpless. The company declined to recall the defectives cars though, because it was deemed too expensive. Since then the company has promised to take responsibility for the defective cars, though it seems that one of America’s most prominent auto makers just can’t seem to stay out of trouble.

The New York Times has recently reported that GM has failed to report another massive problem with their cars. GM recalled about 8,000 Pontiacs from 2005 to 2006 for defective brake lights that failed to work when the brake pedal was applied. What GM didn’t announce at the the time though was that the recall really affected an approximate 2 million other vehicles. They included models such as the G6, Malibu, Malibu Maxx and Aura. Since that time GM has said that the broken brake lights were responsible for 13 accidents and 2 injuries. The company claims that they did not recall the other cars because the problem did not show up frequently.

GM even told dealers about the problem, but the cars were continued to be sold without directly informing consumers. Alan Adler, a GM spokesman, tried to explain “We were monitoring these vehicles and looking to see what was happening with them all along, we made a decision that we thought was appropriate.” What they thought was appropriate was to make a decision that saved the company money even if it meant risking the safety of their customers.

They have also tried to wave the blame by pointing the finger at the National Highway Traffic Safety Administration, who did not pressure GM to recall the newer cars. It is important to acknowledge though, that the NHTSA believed that GM was correcting the problems from its initial recall, so that it would already be fixed in the newer models. Adler further tried to defend his employer by stating “The company says it has changed its criteria for recalling cars. It now issues recalls based on the severity of a safety problem rather than the number of warranty claims or complaints.”

Though their failure to recall the vehicles did not result in deaths such as the failed ignition switch did, the point remains the same. GM is a company that has proven time and again that it does not care about its customers. While only 13 deaths have been cited as the fault of GM for failing to recall defective cars with the faulty ignition switch, trial lawyers argue that that number is really closer to 60. Maybe a billion dollar fine will teach GM that they can’t just do whatever they want. Or would they even learn anything?

 

 

Photo: cbsnews


Comment Template

You May Also Like

Economy

The preliminary labor contract that General Motors (GM.N.) had been negotiating with the United Auto Workers (UAW) union has been ratified, making General Motors’...

Business

Just one year after agreeing to collaborate in an attempt to surpass Tesla in sales, Honda Motor (7267.T) and General Motors (GM) have abandoned...

Business

GM expects to be forced to idle the Kansas auto plant next week. The United Auto Workers union went on strike at a facility...

Business

Currently, Toyota Motor is the American best-selling auto vehicle company. Despite inadequate automotive chips, the company has struggled to produce high-quality vehicles. A Thursday...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok