GM Spending Big Bucks On Its 2014 Auto Recalls

Post On 02-05-2015

General Motors was one of the automakers that hurt the most in the year of 2014 due to its auto recalls.

Everybody knows that, in 2014, we have seen the greatest number of auto recalls in recorded history. While some experts believe that 2015 will be actually much worse, recent reports concerning how much money GM is spending to make sure that victims and their families’ claims are covered while attempting to get all cars fixed could scare automakers to change their approach to safety.

The reports indicate that GM is having to cover $2.8 billion in pretax costs to ensure all units of the 42 million cars impacted by their recalls get fixed.

In spite of the costs, GM is still the number one car seller in the country. But the amount of trouble the company is going through to regain its stand with customers could serve as an example to other automakers. The serious accidents linked to last year’s major ignition switch recall have also prompted the company to make serious changes to their manufacturing process.

In light of the increased number of auto recall campaigns associated with equipment failure, companies are being encouraged to make sure that they do not expose their consumers to the same risks. This could mean that a positive change may be in order after 2014.

In Spite Efforts, Consumers Still Ignore Auto Recalls

Consumers should make sure they are not ignoring recall campaigns that impact them directly. Unfortunately for many of us, accidents often occur long before the auto recalls are launched. To avoid accidents after the campaign is released, consumers should heed the instructions proposed by the manufacturers and avoid waiting to have their vehicles inspected and fixed.

If you have any questions concerning GM’s recall expenses, you can follow this link to read the full article.