GM tells Wall Street recalls may last into summer

[Omaha Steve]

Source: AP-Excite

By TOM KRISHER

DETROIT (AP) — General Motors is telling Wall Street that a recent spate of recalls may last until mid-summer as the company continues to review unresolved safety issues.

The news comes a day after The Associated Press learned that GM CEO Mary Barra told members of Congress that the company cannot make ignition switches fast enough to keep up with demand in its recall of 2.6 million small cars.

The ignition switch problem has been linked to at least 13 deaths in crashes involving Chevrolet Cobalts and Saturn Ions. Congress and the Justice Department are investigating why GM knew about the switch problem for at least a decade but only started recalling the cars this February.

GM has undertaken a safety review that has resulted in 29 U.S. recalls so far this year covering a total of 13.8 million vehicles, more than five times the number of cars and trucks the company sold in the U.S. last year.

FULL story at link.


Read more: http://apnews.excite.com/article/20140522/general_motors-recall-fed2afa7c9.html

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FILE - In this April 1, 2014 file photo, General Motors CEO Mary Barra testifies on Capitol Hill in Washington before the House Energy and Commerce subcommittee on Oversight and Investigation. Barra is preparing for a return trip to Capitol Hill as an internal investigation into the company{2019}s safety problems nears a close. (AP Photo/Evan Vucci, File)

[DonCoquixote]

1. Uncle Sam buys the company

and they start producing economic cars that people want to buy.

We give it back to the private sector, and then execs go right back to cover ups, stick ups, and fuck ups.

Though if the recall happened during Uncle Sam's control of the copmpany, the GOp would blame uncle sam.

[Psephos]

2. Alternate idea:

Government was aware of looming recalls, and made sure to sell its shares before the share price took the recall hit. Take it a step further - government manipulated the recall timing to its benefit.

Don't be fixated on the red team vs. blue team paradigm. It's carefully maintained by TPTB for a reason.

"When a wise man points at the moon, a fool looks at his finger."
- Sufi saying

[former9thward]

3. The problems were produced when Uncle Sam owned the company.

The recalls happened when the private sector took over and found out the problems being covered up. Quite the opposite of your story. GM has never produced economic cars people want to buy no matter who owned it. GM was producing junk in the 70s and I don't think their business model ever changed since then.

[fujiyama]

4. That's some really clever revisionist thinking on your part

This goes back decades. The corporate culture at GM is an absolute mess and nothing means more to the company than cost, cost, cost. They squeeze suppliers to the bone. This is nothing new.

Their initial quality was improving, but it seems like the old ways at GM again. It takes years to gain back customers after selling shoddy products.

[RussBLib]

5. I will NOT be buying a GM auto this summer

We're in the market, but this is one car maker we will avoid.