GM Recalls Even More Vehicles

By | March 31, 2014
In addition to the recall that has been making headlines for the past few weeks, General Motors has announced another recall over the weekend. This new recall will affect 490,000 trucks and 172,000 compact cars. The total count is now just under 5 million vehicles for the first three months of the year. Many of the automaker's popular models have been included in the recall, such as the 2014 Chevrolet Silverado 1500 and GMC Sierra 1500, 2015 Chevrolet Suburban and Tahoe, and the GMC Yukon and Yukon XL. Models equipped with a six-speed automatic transmission have a loose fitting for the transmission's oil cooler line, which could leak and lead to fires. While this year may have started in GM's favor with a new CEO, Mary Barra, the slew of recalls have negated all good press the company may have seen. The brunt of the damage to GM's reputation came from the recall involving faulty ignition switches that resulted in at least 13 deaths. This recall has since been expanded to include more model years for the affected vehicles.
Kevin Lane Keller, professor of marketing at Dartmouth's Tuck School of Business told the The New York Times that "One of the advantages of having a strong brand is that it helps you weather a crisis more easily." This may be true for other automakers like Toyota, but GM is coming back from bankruptcy, and now that it's facing criminal charges, only time will tell if its reputation can help it weather this latest storm. Source: NHTSA, NY Times