General Motors Company (NYSE:GM) is careful with recalls, Ford Motor Company (NYSE:F)

Posted by George Brook June 17, 2013 0 Comment 1554 views


General Motors Company (NYSE:GM) is recalling around 231,000 SUV’s that could be in danger of an electrical short which in turn could lead to a fire. This move is a carry-through from 2012 August, when 249,000 SUVs were recalled for a short in its driver’s door, circuit board that could result in a fire. Both recalls included the GMC Envoy XL, GMC Envoy, 2006 Chevrolet Trailblazer EXT, Saab 9-7X, 2006-2007 Chevrolet Trailblazer, Buick Rainier as well as the Isuzu Ascender. GM said that out of the over 480,000 recalled SUVs, around 443,000 were in the United States. The company said that it has received 58 different reports of vehicle fires as well as 11 minor injuries that were related to this issue. Most of these complaints were for vehicles from the previous recall.

Errors abound

Vehicle recalls are not a new occurrence, but a very recent Ford recall is surely one of the biggest of 2013. On June 3, Ford Motor Company (NYSE:F) announced that it will be recalling 465,000 vehicles. Concerns had been raised that a fuel-leak could lead to a fire. Though there have been no actual reports of any fires, the company doesn’t really want to take any chances. This recall will affect the forthcoming Interceptor Utility, Flex, Interceptor Sedan, Explorer, Fusion, Lincoln MKS, Taurus, MKZ and MKT, 2013 vehicle models.

Apart from this massive fuel-leak recall, the company also announced two smaller recalls that would affect just a few hundred vehicles. Five hundred 2013 Lincoln MKZs and the 25, Ford 2013 Fusions were recalled for different issues. Last July, Ford had been hit with two recalls, over issues with the Escape SUV line. The first involved a misplaced carpet while the other was a stuck gas pedal issue.

Correcting and moving on

Car companies seem to take these complaints in their stride and don’t really seem to be squirming in their seats. The factor that comes into play here is that of the customer psyche. As long as the recall has been initiated by the manufacturer, the average customer does not view them as an issue. Both Honda and Toyota saw a rise in market share in the United States, this year, despite the fact that these companies had recalled literally millions of vehicles. At the end of the day, credibility has to be built and so does a brand name.


About George Brook

George Brook covers money and politics for GDP Insider. George is a veteran journalist who has also covered Congress, national political conventions and presidential politics. George also covers the White House as well as economic and domestic policy for GDP insider. George's reporting has won numerous awards, including two Scripps Howard awards, two National Headliners, two Gerald Loeb Awards, as well as honors from Sigma Delta Chi and the National Press Club.

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