GM Recall Issue

GM Recall Issue

General Motors News Article Review:

The article talks about the variant of rational choice that deals with general motors company’s failure and its impact on stakeholder. GM Cars (Chevrolet Cobalt 2005-2007, Pontiac G5 2007, Saturn Sky, Saturn Ion) are at risk due to ignition problem and it took more than 10 years to recall cars with the dangerous defect. GM first noticed the problem in its ignition switch back in 2001. Pre-production report identified the issues with the ignition switch but still GM used the switch when it knew that part didn't meet its own specifications. CEO ensured that this issue never happen again but it’s too late to apologize and the people died due to lack of concern for stakeholder safety. Nothing can compensate victims of accidents in the GM cars and the people have lost their loved ones due to company ignorance.
The fact is that GM taken years to act on ignition defect switch and did not take the appropriate action at the right time which has cost more than a dozen human lives. GM exhibits a lack of ethical behavior which killed more than dozen people when it learned of the ignition problem well ahead of the time and the replacement switch cost just 57 cents to fix a faulty ignition. The company decided to recall cars to repair the defective ignition switch and send letters to the affected customers to inform them to schedule the appointment with the dealers.
Generalization Test:
1. General motors decided to recall 1.3 million cars for faulty Ignition switch which they have noticed the problem since 2001 but they didn’t taken any action /recall. GM should have recalled GM cars before a decade instead of initiating recall now. The reason was inconsistent.

From GM point of view, the delayed recall was not answered/justified properly (It’s been more than 10 years since the issue was spotted) which in turn affect the brand reputation among customers and shareholders.

2. What if all the car makers done the same thing by...

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