Friday, July 25, 2014

Latest GM recall involves another 800,000 vehicles. Yet sales are up!

General Motors has gone through many restructurings in the past
as depicted by the Outs and the Ins 
Logos from hooniverse.com

Yesterday GM announced six more recalls, involving problems other than faulty ignitions switches: air bags, seats and turn signals "parts that may not been welded together properly and a loss of power steering." 

That brings the total number of GM cars recalled since January to 29 million -- yes, yes- that number is not an error.

Yet, despite this plague of recalls and a $3.8 billion outlay to cover these defective ignitions,   GM is selling more cars than ever.

This flies in the face of reality.

One would think that the prospective car buyer would shy away from buying a GM product.

But, such is not the case.

What is happening is that when the GM car owner is waiting at the dealership for the recall rectification, savvy car salesmen are convincing many many owners to upgrade and switch to newer models with "new bells and whistles."

It was just reported that it is the sale of big S.U.V.s that is pushing sales up-- way up-- as tens of thousands of these vehicles are rolling off the showroom floor.

Did GM deserve to be bailed out by the US Taxpayer?

And should the automaker be broken up into four separate units to allow more transparency as I previously suggested? (See my prior blog, click here)


And finally should the Chief of their legal department be allowed to retain his position,  or should he be fired? 

You must decide for yourself as we contemplate the wisdom of keeping this behemoth alive as it is.


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