This past week was one to forget for General Motors. Although its one that won't soon be forgotten by family members and friends who lost loved ones in accidents caused by faulty ignition switches in cars built by G.M. This week a revelation of sorts as the individual who is overlooking G.M.'s victims compensation fund, Kenneth R. Feinberg increased the number of deaths that the automaker is responsible for, from 13 to 19. The increase in victims is a story alone, as for years General Motors continuously stuck to 13 deaths as the number it said it was responsible in the faulty ignition switches accidents.
The deadline for compensation claims from G.M. is 12/31/14 and surely the number of victims is going to rise between now and then. There are still over 100 cases that pending review by Feinburg as we are still learning new details about the victims and the compensation that they are going to receive from G.M. And where does this leave the legacy of General Motors and the future of the automaker? And did the United States government know to the degree that we as tax payers were buying-out a horribly faulted company? Not just in debt to the tunes of hundreds of millions of dollars, but also manufacturing rolling-death traps?
It begs the question for me to ask. What does the future hold for G.M?
Having owned 14 years worth of General Motors automobiles, three Saturns and 2 Chevys I can tell you that they have lost me as customer. I remember how proud I was when I purchased the car that I own today, a 2009 Chevy Cobalt LT, two door. It has given me limited problems during the first 98,000 miles of its life and I plan on keeping it for years to come. But when that time comes to purchase a new/used car I can tell that you the stigma of owning a G.M. product, following all of the lies and cover-up of the ignition switch story is going to remain with me for years to come.
There are far too many other car manufacturers who offer a better product, at a competitive price with more features than G.M. does. There is no way that I can spend an excess of $20,000 on a product of which the company employees killers and liars. The recall on my Cobalt has been complete and the car runs fine, its never had any major problems. But in the back of my head I still think that eventually the car is going to turn off randomly when I am driving down a busy freeway and I am not going to have to have a chance to pull off to the side before something bad happens to me.
When I think of the word "innovator" General Motors doesn't come to mind. When I think the word "innovator", the feeling and emotion that it invokes is going to be key in the future of automotive industry. The company squashed a huge chance to get out ahead of the electric car and hybrid game with the EV1. These days the company is slow to react to changes in the market, even in markets that they used to own for decades. One of these segments was luxury cars were G.M. and their Cadillac division hasn't lead the industry since 1997 according to a recent article by the New York Times.
Japaneses competitors Lexus and Infiniti, not to mention European automakers BMW, Volvo, Audi and Mercedes have all taken considerable market share away from Cadillac over the last 18 years. Flash, style and reliability aren't words that come to mind when a young consumer thinks of the Cadillac brand which has often marketed itself towards older and financially established males drivers. But times have changed individuals are making more money earlier in their lives than in previous decades although Cadillac has rarely changed its marketing strategy in order to keep pace with the Europeans or the Japanese.
What does the future hold for this Goliath of a automobile and truck manufacturing company? Only time will tell us.
Source:
http://nyti.ms/1qWIXMt
http://nyti.ms/Y2avG8
Sunday, September 28, 2014
Monday, September 8, 2014
General Motors Slogan: Nothing Changes Here
Apparently General Motors continues not to act quickly when it is involves both the safety of the owners of their vehicles, or the speed at which its board members make decisions. This time the beleaguered automaker which continues to shoot itself in the foot, legs, or whatever is left below the waist was forced to disclose that its own board members had very little knowledge about the recalls that continue to affect the company and its customers. In fact, the board's chairmen, Theodore M. Solso said that he "only had vague recollections of the details behind the recall." That's quite a statement when you consider that GM has recalled some where between 26 and 29 million cars and trucks this year.
Also today, in an interview that she did with MSNBC, GM CEO Mary Barra announced that GM is likely done recalling cars and trucks for 2014. The company has released information leading to 65 recalls in the first seven months of this year. Including the heavily publicized ignition switch recall that affected 10-years worth Chevy Cobalts and various Saturn models that lead to the deaths of 13 people. The company has set up a victims compensation fund and it is expected to pay up to 600 million dollars. The fund received 100 death claims in the initial month that it was available.
Personally, I find it sort of odd that GM would release a statement in early September saying that they are done recalling vehicles when there is still four months left in the year. Why did Mary Barra have to release such a statement in the first place? Was it because General Motors has run out of money to fix the millions of cars that for years it failed to inform buyers about? I have a feeling that by announcing that General Motors is done with recalls in 2014 it just means that the first several months of 2015 are going to have several recalls on newer models that the company could have revealed this year. But the company, who continues to take a beating in public perception and in the press decided to make a play towards the future and look forward to the 2015 models years.
Sources:
Barra: GM likely done with recalls on older vehicles
G.M.’s Board Is Seen as Slow in Reacting to Safety Crisis
Barra: GM likely done with recalls on older vehicles
Also today, in an interview that she did with MSNBC, GM CEO Mary Barra announced that GM is likely done recalling cars and trucks for 2014. The company has released information leading to 65 recalls in the first seven months of this year. Including the heavily publicized ignition switch recall that affected 10-years worth Chevy Cobalts and various Saturn models that lead to the deaths of 13 people. The company has set up a victims compensation fund and it is expected to pay up to 600 million dollars. The fund received 100 death claims in the initial month that it was available.
Personally, I find it sort of odd that GM would release a statement in early September saying that they are done recalling vehicles when there is still four months left in the year. Why did Mary Barra have to release such a statement in the first place? Was it because General Motors has run out of money to fix the millions of cars that for years it failed to inform buyers about? I have a feeling that by announcing that General Motors is done with recalls in 2014 it just means that the first several months of 2015 are going to have several recalls on newer models that the company could have revealed this year. But the company, who continues to take a beating in public perception and in the press decided to make a play towards the future and look forward to the 2015 models years.
Sources:
Barra: GM likely done with recalls on older vehicles
G.M.’s Board Is Seen as Slow in Reacting to Safety Crisis
Barra: GM likely done with recalls on older vehicles
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