Late tonight I had a chance to read this message that was in my inbox:
Hello IT Nerd. I’ve read your blog for some time and you’ve been very opinionated about Toyota’s recalls. I am wondering if you have any comments about GM’s recall nightmare and if it’s worse than what Toyota went through?
Thanks for reading my blog. In short, it sucks to be GM right about now.
Both GM and Toyota seem to have come down similar paths. There were issues, those issues were covered up minimized, and then bad things happened. As in people died. Here’s where they differ. When Toyota went through their recall nightmare, they had the reputation of being a quality carmaker and had some brand equity to play with. Thus they could always recover from their issues. This is evidenced by the fact that in 2013 they were the number one carmaker on planet Earth. GM on the other hand doesn’t have anywhere near that level of brand equity to play with because they didn’t exactly have the best reputation for producing quality products to begin with. This was highlighted in Congressional hearings today where it was pointed out to GM CEO Mary Barra that their issues with ignition switches could have been solved for a mere $0.57. On top of that they’ve gone through bankruptcy recently which does little to attract customers. As a result, Toyota’s experience with a recall nightmare was bad, but GM’s experience has the potential to be far worse. Consider that Toyota recently settled their recall issues with the US Justice Department for just over a billion dollars, admission of responsibility, and being subject to third party oversight. So if that’s what Toyota got for their recall issues, I think it’s a safe bet that GM is going to get a punishment that is far worse than that. I don’t think it will be terminal for GM, but it is really going to hurt them and how they are perceived in the marketplace for a very long time.
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This entry was posted on April 1, 2014 at 10:54 pm and is filed under Commentary with tags GM. You can follow any responses to this entry through the RSS 2.0 feed.
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Hey IT Nerd! Any Comment About The GM Recall Nightmare?
Late tonight I had a chance to read this message that was in my inbox:
Hello IT Nerd. I’ve read your blog for some time and you’ve been very opinionated about Toyota’s recalls. I am wondering if you have any comments about GM’s recall nightmare and if it’s worse than what Toyota went through?
Thanks for reading my blog. In short, it sucks to be GM right about now.
Both GM and Toyota seem to have come down similar paths. There were issues, those issues were
covered upminimized, and then bad things happened. As in people died. Here’s where they differ. When Toyota went through their recall nightmare, they had the reputation of being a quality carmaker and had some brand equity to play with. Thus they could always recover from their issues. This is evidenced by the fact that in 2013 they were the number one carmaker on planet Earth. GM on the other hand doesn’t have anywhere near that level of brand equity to play with because they didn’t exactly have the best reputation for producing quality products to begin with. This was highlighted in Congressional hearings today where it was pointed out to GM CEO Mary Barra that their issues with ignition switches could have been solved for a mere $0.57. On top of that they’ve gone through bankruptcy recently which does little to attract customers. As a result, Toyota’s experience with a recall nightmare was bad, but GM’s experience has the potential to be far worse. Consider that Toyota recently settled their recall issues with the US Justice Department for just over a billion dollars, admission of responsibility, and being subject to third party oversight. So if that’s what Toyota got for their recall issues, I think it’s a safe bet that GM is going to get a punishment that is far worse than that. I don’t think it will be terminal for GM, but it is really going to hurt them and how they are perceived in the marketplace for a very long time.Share this:
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This entry was posted on April 1, 2014 at 10:54 pm and is filed under Commentary with tags GM. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.