Safety recalls blamed for falling profits
The reported income of General Motors Co. fell 88 percent during the first quarter of 2014. The massive recall of millions of GM vehicles over faulty ignition switches and other safety concerns is cited as a major contributing factor to the profit loss. Among other problems, the defective ignition switch is blamed in 13 deaths and 31 car crashes.
Massive recalls over safety issues
More than 7 million automobiles were involved in these recent safety recalls. Of the 7 million recalls, 2.6 million were the result of a malfunctioning ignition switch. GM has come under fire for not recalling the defective parts quickly enough, but consumers seem to be demonstrating forgiveness as they continue to purchase GM-made automobiles.
Even the smallest parts matter for safety
It’s no secret that even the smallest pieces used in manufacturing can play a significant role in any industrial product’s safety and effectiveness. For example, something as seemingly small as steel washers can be critically important. Though an ignition switch may seem small in relation to the car as a whole, clearly it plays a significant role in the safety and function of automobiles.
Correcting the problem
United States safety regulators are continuing to investigate the problem. GM is reportedly devising a plan for aiding the victims of its manufacturing oversight. Since the recall, GM has undergone restructuring within their corporation.
What’s next?
Despite the negative publicity, GM officials are positive about the company’s overall operations as the largest automaker in the country. If the year does end in a loss for GM, it will be the first time the automaker has posted a loss since 2009. GM’s stock values have fallen by 5 percent since the recall.
