Can General Motors Survive The Firestorm And Keep Their Reputation Intact?

If the nation’s long history of product recalls and corporate screw-ups is any indication, General Motors Co. will survive the burgeoning ignition switch controversy already blamed for a dozen deaths.

But at what cost? The Detroit automaker got a strong hint Wednesday, when federal authorities handed rival Toyota Motor Corp. a $1.2 billion fine and three years probation for stonewalling a government investigation into alleged unintended acceleration of Toyota and Lexus vehicles. Litigation, legal bills and associated expenses total nearly $2 billion more.

Dollars and cents, however, are not the only corporate asset imperiled by the negative PR of recalls and how management does — or does not — handle them. GM’s ignition switch flap, emerging just weeks into Mary Barra’s tenure as CEO, threatens a fragile reputation just beginning to recover from five years of bailout, bankruptcy and the burden of the “Government Motors” rap.

ParadoX - 3/20/2014 5:24:33 PM

+1 Boost

They'll live. My bet is that they settle quickly in order to put it behind them.

freeagent - 3/21/2014 12:48:13 AM

+4 Boost

Keep what reputation?

TheSteve - 3/21/2014 2:58:52 AM

+2 Boost

In order to worry about losing a good reputation, first you must have one. GM doesn't.

HoustonMidtown - 3/21/2014 6:39:13 AM

-1 Boost

It will be forgotten about quickly - most people don't watch/listen to auto news like we do so they don't care -- look at Toyota

HughJass - 3/21/2014 9:51:20 AM

+1 Boost

News today is that part of problem is GM wanted the cheapest parts available from China. Toyota should take not and reverse their plan on buying the cheapest parts they can find.

We need to drop this Walmart mentality and start paying the real price for goods and learning to live emasculated with only a 50" TV instead of a 55" one.

China, you get what you pay for. Pay crap, get crap.

TomM - 3/21/2014 12:56:45 PM

0 Boost

1 - Virtually all of the major Auto Makers are Unionized - especially in their home countries - so finding a car that had NO union input into the design and build (Even at the parts level) is going to be pretty hard
2 - The GM bailout was started - and authorized by the BUSH administration - and they received the first 13 billion or so before Obama even came into office - why do you have to LIE about it
3 - When Clinton was president - the Gingrich lead House defeated the proposal for health care presented by Hillary - saying that within MONTHS - they would have in place a BETTER - LESS COSTLY - and more Human system of universal health care. It is 20+ years later - and the republican still have NO made any proposals - nor have they passed any alternatives. Apparently even Obamacare cannot revive dead republican promises

Larrybel2000 - 3/23/2014 8:25:09 AM

+1 Boost

GM has issues in all levels of management. Even in the individual plants when the best people on the job are noticed from outsiders (vendors or equipment warranty companies, ect.). These people get offered jobs and GM management just lets them go with no question. Maybe the unions make it impossible to offer incentives. The point is that the best talent is working elsewhere.