2/10/2005

GMC recalls-good or bad?

According to a recent article in MSNBC, http://www.msnbc.msn.com/id/6947046/, GM is recalling over 155,000 trucks, SUV's, and vans. This recall is due from a pressure accumulator in the braking system that could crack during normal driving and fragments could injure people if the hood was open. The crack also could allow hydraulic fluid to leak, which could make it harder to brake or steer and could cause a crash.
Would something like this not cause a decrease in the demand of those certain GM vehicles, especially when a few of them are very high dollar vehicles, for example, the Hummer H2, Avalanche, Silverado, and Suburban? This type of recall has to trigger some kind of actions in consumers as to whether they will buy GM vehicles in the future. I know this doesn't compare to the firestone tire recalls that devastated their company in the past, but I feel that it does have a significant impact on us as consumers as to what we think of buying for our next vehicle. If those people that buy the higher class SUV vehicles change their preferences on vehicles, that could have a pretty big impact on GM's sales and profits.
What do you think? Would you change your loyalty to GM because of instances like this, or would you still buy from them?

6 comments:

Harry said...

This is a scary situation to be in for customers and GMC. The reason is because GMC has been around for years and they are thought of as being a top brand. With a scare like this, it is defiantly going to hurt there market share a great deal. It seems more and more today that lots of big companies are having to recall there vehicles for major problems. So it is almost scary to buy any new vehicle. If I personally have always bought GMC’s I probably would continue. Yes, it is scary but if you have not had any problems in the past with GMC then I would give them a break. Let them work out there problems for a while and give them another chance.

Keston said...

If I worked for the GM Corporation I would be a little worried, but I don’t think it will hurt their profits that much. That is a lot of vehicles to recall, but just because there is a recall that doesn’t mean that for sure your vehicle is unsafe, it just means it could be. Yes, it is best that if you own one of those vehicles that you go in and have that part replaced or have the brakes fixed or whatever, but it doesn’t mean that your vehicle will have that problem. A number of vehicles have had that problem and so GM is just being cautious and playing it smart in recalling all of the vehicles that could have that problem and are going to fix it. I think it’s better to admit you made a mistake and try to fix then just forget about it. If I were buying from GM, this would not stop me. I would be glad that they are being responsible for their faults, and would continue to patronize them in the future.

June said...

Car manufacturers issue recalls all of the time. At any given time it is possible to have multiple recalls. Issuing a recall could possibly increase customer confidence in GMC. It is much better to issue a recall early than wait until people die and then point fingers at everybody else(i.e. Ford Explorer and Firestone).

Consumer confidence may increase due to the responsibility of the corporation. A recall doesn't mean absolute death. Consumer demand may remain the same, perhaps it will even increase due to other external factors.

C-Dizzle said...

I think the demand for their vehicles will depend on GM’s response to the recall. If the company is willing to take the recall with grace and efficiency, I don’t think it will hurt the future demand much at all. GM needs to make the part replacement quick and easy for consumers.

If the company makes the recall absolutely unbearable for consumers of GM vehicles, I think it definitely will. Who wants to buy a vehicle from someone who doesn’t stand behind their own successes and their own mistakes with honor?

Jones said...

I think that the recalls will definitely have an impact on the sales of GMC vehicles at first, but unless the press were to make a huge deal out of it, I think people will forget about this every happening in the near future. Yes at first people will have this recall in mind when purchasing a vehicle, but GMC is a top brand with a good reputation so I think this will soon be forgotten. I agree with Meg though, how quickly this whole thing is forgotten will depend on how well GMC goes about handling it.

recallking said...

Hi.
Just thought you may be interested in a new recall information source.
www.totalrecallinfo.com

Take care.