Tuesday, March 2, 2010

I Recall A Time

Toyota's not the only company with a major recall in the US.  General Motors has announced a recall of 1.3 million Chevy Cobalts and Pontiac G4's/G5's for a power steering problem.
GM will replace a motor in the power-steering systems of Chevrolet Cobalt small cars and three Pontiac models, the Detroit-based carmaker said in an e-mailed statement late yesterday. The National Highway Traffic Safety Administration began an investigation following complaints, which included 14 crashes and one injury, GM said.

The action follows global recalls of more than 8 million vehicles by Toyota Motor Corp. for problems including unintended acceleration, which have prompted lawsuits and Congressional hearings. The cases have triggered a review of the NHTSA by the U.S. Transportation Department’s inspector general to examine the way government investigators monitor automotive defects.

“A lot of carmakers are coming out with recalls as they want to show that they are being strict about quality,” said Jeong Min Pak, a Seoul-based senior director at Fitch Ratings. “They want to avoid the negative press that Toyota has received.”

The vehicles covered by GM’s action are the 2005-2010 Cobalt, 2007-2010 Pontiac G5, 2005-2006 Pontiac Pursuit sold in Canada, and the 2005-2006 Pontiac G4 sold in Mexico. A remedy is being developed and customers will be notified when the plan is completed, the statement said.

“Recalling these vehicles is the right thing to do,” Jamie Hresko, a vice president for quality at GM, said in the statement. 
It also means they can come in under the radar while everyone's still mad at Toyota and make recalls now, rather than later.  Without Toyota's recall, we'd be having Republicans attack "Government Motors" and want to know why Obama personally wasn't falling on his sword over this recall.  Right now however, GM is one of the good guys again, an American automaker and not a foreign one that sold millions of potentially shoddy cars in the US.

Smart move, GM.

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