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How Automaker Handles Recalls More Important Than the Number of Cars Affected

Released: 17-Jun-2014 8:50 AM EDT
Source Newsroom: Cornell University
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GM just announced the recall of another 3 million vehicles due to faulty ignition switches. Art Wheaton, automotive industry expert and senior lecturer at Cornell University’s ILR School, says that the number automotive recalls won’t necessarily hurt an automaker – as long as they are properly handled.

Wheaton says:

“GM just passed 20 million recalls so far this year. Recalls are not necessarily a bad thing for consumers. Headlines and bad news occur when car companies delay recalls and handle them too slowly or hesitate to fix safety issues due to cost concerns.

“Properly handling recalls helps demonstrate a commitment to fix potential safety problems.

“They also give consumers the opportunity to get their vehicles inspected for other potential issues or delayed maintenance. It can be a source of revenue for dealers and helps build customer loyalty.”

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