GM Recalls Will Have No 'Measurable Impact' on Sales, Ammann Says

By | April 21, 2014
General Motors suffered a huge hit when it recalled a massive number of vehicles for faulty ignition switches. From the highly publicized trial to claims that GM failed to inform the public in a timely manner, the issue can't be good for GM's reputation. Despite the fallout, General Motors President Dan Ammann told The Wall Street Journal he doesn't expect the recall to have any "measurable impact" on U.S. sales. Early signs showed that perhaps consumers have been reacting negatively to news of the recall. According to The Boston Globe, data from J.D. Power and Associates showed GM sales dropped 6.3 percent the first five days of April, while the overall market slid just 0.3 percent. However, it may be too early to tell if this trend will continue. Retail sales to individual customers for GM actually went up 7 percent last month, CEO Mary Barra announced. Considering that most of the recalled GM vehicles are older models, the automaker may not suffer as much in sales as Toyota did during its unintended acceleration fiasco. During the latter half of 2010, Toyota's sales plunged over 8 percent. Like the GM recall, the public attributed a number of deaths to the recall.
Just how far has the New GM come in the past few years? We will just have to wait until the end of the month to see how much GM is affected by the recall. Source: The Wall Street Journal, The Boston Globe