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Americans Not Impressed with GM Transparency

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Jarod Cassidy3 years ago

A recent poll by the Huffington Post shows that roughly 80 percent of Americans who are aware of the General Motors ignition switch recall believe the automaker’s reputation has suffered. Further, less than 10 percent believe GM was forthcoming with information pertaining to the part.

Attempts to Save Face Prove Bad for Business

While GM’s reputation before the recall was not very strong, with the company attempting to re-invent itself following the 2009 bailout, polls show that current opinions of the company may be worse than ever.

In fact, polling shows that only 34 percent of Americans who claim to be familiar with the recall have maintained a favorable opinion of the company while 61 percent reported an unfavorable opinion.

More alarming for the company is the fact that 42 percent of all respondents said that they had heard something recently that would make them less likely to purchase a GM car. Karl Brauer of Kelley Blue Book warns that this negative perception will only spread as time goes on.

Gene Grabowski, a crises management strategist, says that in order to improve its reputation, GM must take responsibility and address the federal investigation openly and transparently.

GM Fined for Lack of Disclosure

Last week, General Motors failed to meet a deadline described in a Special Order issued by the National Highway Traffic Safety Administration.

In the order, NHTSA requested that GM answer a series of questions concerning the defective ignition switches – the company was given until April 3 to comply.

However, upon the deadline being reached, GM had left a third of NHTSA’s questions unanswered. While the automaker cited a need for additional time to address the “technical engineering questions,” NHTSA observed that many of the unanswered questions required no engineering expertise.

Among these questions were whether the defective switches had undergone more than one redesign and what data GM considered before previous decisions to not recall affected vehicles.

NHTSA has begun fining the automaker $7,000 a day until the company provides answers for the remaining inquiries.

So far, the defective ignition switch has been linked to 13 deaths and 31 frontal collisions.


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