Mini Project to Term Project

GM and the U.S. auto industry’s performance

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It seems since GM’s bailout, their track record has been anything short than un-trustworthy. After some careful researching, I have discovered what seems to be an all-time high recall record for this company. In this paper I will discuss the issues that they’ve had, and what was done in reference to these dilemmas.

Granted, in the positive aspect of things, GM has made exceptional sales with their latest vehicles. GM is expected to challenge the status quo in the emerging mid-size class truck market with its 2014 Canyon (247 wallstreet, 2014). Although the sales of their latest vehicles have been on a steady incline, it’s nothing compared to Toyota’s Camry’s, as 247 wallstreet (2014) states: “Which remains America’s best-selling car, says it produced a record 1.86 million vehicles in North America last year – a five percent increase from 2012”.

Now let’s focus on some of the downfalls GM has had recently. In the end of 2013 (between Jan. 29 and Oct. 28), Silverado and Sierra trucks that were built seemed to have a glitch of their electrical system. This glitch was triggered by the use of the steering wheel controls. The effect of this scenario was the fact that the person driving the vehicle would/could lose any of the external device data (music, mp3s, etc) that was being played via the USB port. Although this seems insignificant, “General Motors is seeking federal regulators' permission to not recall more than 200,000 new Chevrolet Silverado and GMC Sierra pickups because of an electronic defect that can be triggered by using the steering wheel controls” (Automotive News, 2014). GM has decided to fight this by saying it only happens if the driver uses the steering wheel in a specific way.

In other news, GM also had to recall more than 588,000 vehicles due to ignition switches that would shut off by themselves and cause crashes. This issue has been linked to 31 crashes and 13 front-seat deaths (Autonews, 2014). Once the engine cuts out in a situation like this, the front air bags will not deploy. After the recall, GM stated that they would replace the faulty switches for their customers.

In conclusion, although GM has had its ups and downs since their major bail-out, their sales seem to be having a steady incline. With any recalls or issues with their vehicles, they are quick to respond and attempt correcting the problem in a timely manner. On a personal level, I feel that their sales will continue to do okay as long as they don’t continue to produce vehicles that are unsafe for the public.

References

Automotive News. (2014). GM expands ignition switch recall by more than 588,000 vehicles.

Retrieved from: http://www.autonews.com

Automotive News. (2014). GM tells NHTSA Silverado, Sierra glitch 'inconsequential'. Retrieved

from: http://www.autonews.com

McIntyre, Douglas. (2014). 2014 U.S. Car Industry Forecast. Retrieved from:

http://247wallst.com