General Motors – A Step In The Right Direction?

A recent news report has revealed the General Motors may have bigger financial problems. Apparently they've issued a recall of 1.5 million hours due to a fire risk. The models include Buick, Chevrolet, Monte Carlo and Pontiac midsize car cars. GM has stated that several of these models are actually leaking oil that could result in the engine catching on fire. The recall applies to 1997-2003 Buick Regal; 1998-2003 Chevrolet Lumina, Monte Carlos and Impala; 1198-1999 Oldsmobile Intrigue and 1997-2003 Pontiac Grand Prix.

GM dealers will remove the plastic spark plug retention channel and will install two new spark plug wire retainers at no charge, according to a recent press release.

It appears that GM is trying to get a jump on what could potentially become a firestorm of lawsuits across the United States should people be injured. We remember a case many years ago when Audi took the same action. Reports came pouring in that certain models would cause the car to explode when hit from the rear in an accident. Audi sought to circumvent the problem by appearing on 60 Minutes and issuing a recall of those models and fixing them free of charge. GM execs may have learned their lesson from Audi. They know it only takes one lawsuit to cause further financial problems for a company that is already teetering on the brink. We applaud GM for issuing the recall and seeking to make the situation right before someone is seriously injured or worse, loses their life.

Other companies should take a lesson from GM. Step up, take responsibility and fix what’s wrong. Telling the truth and being accountable will go a long way to keeping the public safe and creating a stellar image. If you have one of these automobiles the responsibility now lies with you to get the repairs complete. With this move, GM has limited their liability, enhanced their image and most of all, and fixed the problem. Make no mistake though, it was also a savvy business move on their part. While they are spending a lot of money on the repairs, it pales in significance to the cost of litigation over the long haul.

Over the coming months we will keep you informed as to what is happening with this particular recall effort. For now, we believe that GM is heading in the right direction.