Major GM Auto Recall Impacts Company’s Finances

The year of 2014 has provided some of the worst periods in history for auto recalls. Unfortunately for many of us, these recalls are seldom publicized as much as the vehicles are when they are launched by the companies, making it hard for consumers to become aware of potential problems.

In order to ensure consumers are safe from possible accidents caused by issues linked to auto recalls, companies like General Motors have been putting a lot of resources into fixing impacted vehicles. In spite of their efforts, many cars remain unrepaired, an issue that has prompted the U.S. National Highway Traffic Safety Administration to intervene.

Due to the major impact caused by the recalls, the company has spent $2.8 billion in costs to repair the 42 million vehicles impacted by recalls issued during 2014. Due to the fact so many death and personal injury claims have been attached to some of the recalled vehicles manufactured by GM, the company set $400 million aside.

GM and many other automakers are learning an important lesson the hard way in light of these reports. According to experts, car manufactures must step up their design and safety technology so that auto recalls like the one that killed dozens of GM car owners become a thing of the past.

2015 Could Be A Worse Year for Auto Recalls

The National Highway Traffic Safety Administration has recently indicated that consumers should not be too optimistic about 2015 when it comes to recalls. Some of the recalls that caused trouble to automakers in 2014 are still causing them headaches now. That’s the case with the recalls involving air bag inflators manufactured by Takata.

In spite of the fact Takata is slowly manufacturing the remedies for the millions of vehicles impacted by the inflator that could suddently explode amidst deployment, many vehicle owners remain unaware of when their vehicles will be fixed. Other air bag-related recalls and several others have already been issued and February has barely begun.

Whether you’re a car owner, a driver, or a passenger, do not allow an auto recall to go unaddressed, especially if the equipment failure linked to the recall could lead to serious and even deadly results.

Avoid major car accidents and keep your loved ones safe by responding to the auto recall campaigns and heeding the instructions put forth by the manufacturers. If you’re curious to know more about GM and how much the firm is spending to remedy one of its most complicated recall campaigns in history, follow this link.


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