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GM Must Learn From Toyota’s Mistakes in Current Mass Recall

Released: 16-May-2014 10:00 AM EDT
Source Newsroom: Cornell University
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Art Wheaton, automotive industry expert and senior lecturer at Cornell University’s ILR School, says that the massive General Motors recall announced Thursday can be a plus for the huge automaker if it avoids the mistakes that Toyota made in an earlier mass recall.

Wheaton says:

“General Motors dramatic increase in the number of recalls should not be viewed as purely negative. Recalls are not inherently bad; they indicate there is a potential safety issue.

“Both the manufacturer and dealerships can improve their reputations if they handle the recalls effectively. General Motors is also trying to reduce liability and potential fines by proactively addressing issues quickly as their organization is under government scrutiny over ignition switches.

“Toyota was battered in the press and incurred huge penalties – more than $1 billion – for their handling of recalls and lack of cooperation. General Motors is fully aware of this and is trying to show it cares about safety and their customers.”

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