The economics of the GM recall
General Motors CEO Mary Barra will appear before House and Senate subcommittees on Tuesday and Wednesday to answer questions related to how much the auto manufacturer knew about ignition switch problems which have been linked to at least thirteen deaths and the recall of 2.6 million vehicles.
Watch the House Energy and Commerce Committee’s live video of Tuesday’s hearing here at 2:00 p.m. ET.
Recalls in and of themselves aren’t a bad thing: some analysts think they can have an economic benefit by boosting trust between car owners and automakers.
In 2013, Americans saw a bumper crop of recalls – almost 22 million of them.
Here is a quotation from Barra’s expected testimony on Tuesday:
“As soon as l learned about the problem, we acted without hesitation. We told the world we had a problem that needed to be fixed. We did so because whatever mistakes were made in the past, we will not shirk from our responsibilities now and in the future. Today’s GM will do the right thing. That begins with my sincere apologies to everyone who has been affected by this recall… especially to the families and friends of those who lost their lives or were injured. I am deeply sorry.
I’ve asked former U.S. Attorney Anton Valukas to conduct a thorough and unimpeded investigation of the actions of General Motors. He has free rein to go where the facts take him, regardless of the outcome. The facts will be the facts. Once they are in, my management team and I will use his findings to help assure this does not happen again. We will hold ourselves fully accountable. However, I want to stress that I’m not waiting for his results to make changes.” – General Motors CEO Mary Barra
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
