How to fix GM

"Jonathon Klein" (jonathon-klein) 06/18/2014 at 13:09 • Filed to: None

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GM is facing an imminent crisis. Millions of its cars are going into recall status, with issues ranging from minor things like the loose floor mats in the foot wells, to more drastic, potentially hazardous air bag ignition issues. With the millions of recalls now affecting GM, how do you fix it all, how do you fix GM? With the taste of "Government Motors" still in the mouths of some, GM already had a gargantuan task of reclaiming the light it had lost during the bailout , and was working diligently to show the American people that their investment was indeed a good one.

And they were actually making a lot of ground in showing that they were a worthy cause. Now, with a stream of recalls that doesn't seem to be stopping anytime soon, GM is struggling to endure the bad weather once again. With it being such a short amount of time since the bankruptcy and subsequent bailout, how can the company bounce back again and show the American people that they are still a great company?

Easy: They don't have to. Somehow, in the midst of all this chaos and bad press, the people have lent their voices and their money to show that they still trust GM. Even with a !!!error: Indecipherable SUB-paragraph formatting!!! filed today that was seeking GM to pay $10 billion for the lost resale value of their cars, people are still confident in GM branded automobiles. Last month, GM posted sales so impressive that I had to do a spit take.

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Here are the highlights according to GM's site.

§ The seasonally adjusted annual selling rate (SAAR) for light vehicles was an estimated 16.5 million units – the third consecutive month above 16 million.

§ Cruze was up 41 percent. Chevrolet Corvette deliveries were up 268 percent, Spark sales doubled, Camaro was up 30 percent and Impala was up 23 percent. Malibu retail sales were up 12 percent.

§ Retail sales of Chevrolet and GMC large SUVs doubled, while retail sales of the Chevrolet Equinox and GMC Terrain were up 16 percent and 13 percent, respectively.

§ Chevrolet Silverado and GMC Sierra sales were up for the third month in a row, with May deliveries up 8 percent and 14 percent, respectively.

§ At Cadillac, sales of the CTS sedan were up 39 percent and Escalade deliveries were up 30 percent. SRX sales were up 27 percent, for the vehicle line's best May ever.

§ Buick Encore deliveries more than doubled and Regal sales were up 49 percent.

§ GM's average transaction prices (ATPs), including full-size pickup ATPs, were in line with April. Calendar year to date, GM's ATPs are up about $2,700.

§ Incentive spending as a percentage of average transaction price was 10.4 percent, down 0.5 points from a year ago, according to J.D. Power PIN estimates. The industry average for May was 9.9 percent.

§ Commercial fleet sales were up 21 percent for the seventh consecutive monthly increase and the best month since September 2008. Within commercial fleet, full-size van sales were up 46 percent and full-size pickups were up 35 percent.

§ Small business deliveries, which are included in retail sales, were up 10 percent.

These figures are just staggering when you consider all the negative press. Upwards of 74 people died (that we know about) because of the negligence GM employees exhibited during the decade-long period they knew about the problem. But still GM sales are through the roof! When you consider the amount of GM cars on the road, that number is miniscule, and it probably wouldn't have been such a big issue s if not for the cover up that occurred. But even with the known cover up, people are still buying GM cars, and they still have faith in the product.

Just look at the sales figures for the Cruze or Encore. The Cruze normally sells around 20k units a month; this last month that figure was up to around 30k. And the Encore is even crazier; this car usually sells in low numbers around the 3k unit mark, this last month it doubled to hit 6k. And unlike Ford, which makes most of its money through truck sales, GM's sales come from a variety of segments. They have a model that is killing in almost every segment. Things like the Corvette will probably come down after a period of time where it becomes easier to get the new Stingray, but with the introduction of the new Z06 coming in a few months, that number might stay that high for longer than anyone could predict.

The facts that GM continues to profit , and continues to post bigger and bigger sales gains are nothing short of staggering. It doesn't matter if the Treasury Department or any part of the government fines them. The $35 million that the Department of Transportation would be replaced in less than a day. While GM may not be paying its penance through its car sales, the cost of all these proactive recalls is surely quite a large number. In addition, GM is still embroiled in the litigious aspect of the ignition deaths which will likely constitute a much higher premium than the one imposed on it by the government.

But what's the bottom line? How has GM's brass weathered the shit storm they put themselves into? The answer is simple: Through brand recognition and owning their mistake. General Motors is still known as the biggest car company on the planet. It has the ability to move a mountain if it wants to and that's what GM is showing the public. GM is at a turning point right now, one that can either doom them, or make them stronger. These recalls have the potential to help spark changes within GM's brass and supply chain, which means GM will continue to thrive.

You can find me here on !!!error: Indecipherable SUB-paragraph formatting!!! too!

Here's the link to GM sales !!!error: Indecipherable SUB-paragraph formatting!!! .

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Jayhawk Jake > Jonathon Klein 06/18/2014 at 13:28

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I think the only reason we are seeing so many recalls is because GM is in 'cover our asses' mode.

Rather than trickle out a bunch of recalls for stupid little things (your Camaro might shut off if you somehow manage to knee the key?!), they're just saying eff it, fix everything now and be done with it.

This time next year no one will be talking about it anymore, and honestly the time frame will probably work out pretty well. The lower end of GMs product spectrum is due for new models (Cruze, Sonic, Spark), so just as everyone forgets about the 'recalocalypse' they'll have exciting new things out.

The question is how does GM handle the financial burden of this thing, and only time will tell. I think they'll be fine, and frankly we'll look back on this whole debacle as being a positive thing for the car maker because it will force them to change their ways for the better.

boo9ie > Jayhawk Jake 06/18/2014 at 14:23

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no because bad ignitions means publicity. publicity good

asbsvc > Jonathon Klein 06/18/2014 at 14:24

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It is irrelevant to GM's future . Americans have fabulously bad taste in automobiles and tend to buy whatever is least expensive to buy/maintain. Where else would the MDX, Camry, and assorted CrossFuckFuckery be a best seller? GM makes bad vehicles, kills a few hundred. Next day, GM lowers prices, boosts warranty coverage. Subsequent sales spikes. Jalops bitch and moan and on and on it goes...

MEESTALUBBA > Jonathon Klein 06/18/2014 at 14:26

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GM already had a gargantuan task of reclaiming the light it had lost during the bailout , and was working diligently to show the American people that their investment was indeed a good one.

The ship has already sailed on that deal since we (taxpayers) lost our ass on the stock sale.

WaWaBlender > Jonathon Klein 06/18/2014 at 14:28

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Ignorance is bliss for the American car buyer.

Whats-His-Nuts > Jonathon Klein 06/18/2014 at 14:30

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These GM articles are getting worse than the CNN flight 370 coverage, give it a rest already.

Kruezerman > Jonathon Klein 06/18/2014 at 14:33

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It's one of those "We Should Know Better" scenarios. Chevrolet itself is outclassed by Ford and Chrysler and any other Japanese automaker, but because it's Chevrolet it'll still be bought.

I asked somebody about the recall issue and they were completely astounded, they didn't have a clue what was going on! Others, like my parents, go with the "It didn't happen to me so I don't care" response, until their own daughter's car failed and had to be towed away.

We should know that Ford, Chrysler/FIAT, Mazda, Nissan, and any other automaker produces far better vehicles for the same (if a little more) price. But the vast majority do not. GM is PT Barnum, swindling the American consumer and giving them nothing.

Maxzillian > Whats-His-Nuts 06/18/2014 at 14:36

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But I love when the Morning Shift is 100% GM!

ILovePickeldEggs > Jayhawk Jake 06/18/2014 at 14:38

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I agree. I think they are doing knee jerk reactive measures to show good faith to the car buying public.

Carwood > Jonathon Klein 06/18/2014 at 14:39

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Great points. I was passing a Chevy dealer earlier and cant help but wish I stopped in and asked the staff how the climate is. If i'm a dealership owner relying on the GM nameplate I cant help but be kinda of annoyed right?

Whats-His-Nuts > Maxzillian 06/18/2014 at 14:40

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I understand this is car website, but its starting to seem they're hopeing for failure.

stoke > Jonathon Klein 06/18/2014 at 14:46

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Simple answer: the industry as a whole is extremely hot right now, and a rising tide lifts all boats, even boats with faulty ignition switches and a cargo hold full of bad press.

That first point about SAAR is your biggest clue. We haven't seen SAAR at this level since 2007, and with last year's total sales of 14.5 million, this year's final number should be almost 2 million up. Yes, GM is up 13% in May, but the industry on the whole was up 11%, and here's what other brands in the industry are doing:

- Chrysler Group is up 17%. Within that, Jeep is up 58%, Ram is up 19% and Fiat is up 18%.

- Lincoln is up 21%.

- Kia is up 15%.

- Mazda is up 23%.

- Nissan Group is up 19%. Within that, Infiniti is up 31% and Nissan brand is up 18%.

- Toyota is up 17%. Within that, Lexus is up 21%.

- BMW Division is up 17%.

- JLR is up 17%. Within that, Land Rover is up 28%.

And across the board, as with GM, incentive spending is down and transaction prices are up. The simple fact is that a lot of pent-up demand is being released right now, both from the long-term effects of the recession and the longer, more difficult winter that much of the country experienced.

Also worth noting - GM is selling a brand-new Silverado and Sierra and launching all-new full-size SUV's, along with the new C7 Corvette, and a relatively fresh CTS, and these are some of the models prominently featured in the results above. New cars in launch mode are almost always going to outsell their predecessors year-over-year.

Not trying to downplay that GM's sales are improving in spite of the crisis - that's certainly the case. I'm just saying that you have to consider the context of the industry, and the freshness of their product line, when you evaluate how strong a company's performance is.

I probably did it > MEESTALUBBA 06/18/2014 at 14:47

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The government didn't have to sell its shares. Who is really to blame fore this fictional loss of money?

I probably did it > Kruezerman 06/18/2014 at 14:49

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where is the eye roll smily when you need it.

Jonathon Klein > Carwood 06/18/2014 at 14:50

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I still bet that people don't recognize Chevy as a GM subsidiary still. At least non car people.

yester > Jonathon Klein 06/18/2014 at 14:58

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I drive a manual and sometimes engine dies or I can turn it off while driving... I disagree that people died because of the engine switch. That idea is just silly and a little bit of investigative journalism could have stop spreading that idea.

JLZ06 > Whats-His-Nuts 06/18/2014 at 15:01

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Yeah, all jalopnik writers seem to be GM haters to me.

SpikeFiend > yester 06/18/2014 at 15:03

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Are you suggesting that you don't immediately un-buckle your seatbelt and swerve into the nearest tree when your engine dies? Possibly while texting or getting drunk as well?

Jonathon Klein > yester 06/18/2014 at 15:03

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Neutral, turn key, back to driving in 10 secs

JLZ06 > Kruezerman 06/18/2014 at 15:04

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You should take a look at JD power initial quality study. Chevrolet scored higher than all the manufacturers you just mentioned by name.

Arrivederci > Jonathon Klein 06/18/2014 at 15:11

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Have been wondering the same thing. It's crazy that they keep on growing when each new bit of information that comes out makes me sicker to my stomach about the entire ordeal. After reading that Bloomberg Businessweek article about GM silencing whistleblowers, it makes me never want to own one of their cars again.

Dream Theater of the Absurd > Jonathon Klein 06/18/2014 at 15:17

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Before there was Government Motors, there was General Morons.

BrianMadigan > Carwood 06/18/2014 at 15:17

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I imagine so. A good dealership can switch nameplates as fast as they can put up a sign. At least they do around here anyway.

Once you've reached that brass ring, the only way down is the golden parachute. Or so I've heard.

Old-Busted-Hotness > JLZ06 06/18/2014 at 15:19

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Well, it's hard to fill out a survey when you're dead.

Old-Busted-Hotness > Jonathon Klein 06/18/2014 at 15:20

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"Owning their mistakes." Isn't that what a GM buyer does?

porchswingheroswingsagain > asbsvc 06/18/2014 at 15:21

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Alfa Romeo. Your argument is invalid.

Stiiles > Jonathon Klein 06/18/2014 at 15:22

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Except you lose your power steering and power brake assist on these cars when the engine quits, and in mid-turn that's a problem.

porchswingheroswingsagain > I probably did it 06/18/2014 at 15:23

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thanks "Obama".

Kruezerman > JLZ06 06/18/2014 at 15:26

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And? JD Power isn't exactly the best analysis when it comes to cars in this case since GM's vehicles break down catastrophically.

JLZ06 > Kruezerman 06/18/2014 at 15:31

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Oh ok. I didn't know you were a more reliable source than JD power on quality studies. I guess your surveys and studies must have been much more thorough.

Jonathon Klein > Stiiles 06/18/2014 at 15:32

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It becomes hard but not impossible. Sure for someone over the age of 75, but most normal adults, you could do it.

Kruezerman > JLZ06 06/18/2014 at 15:37

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Not in the least, but if the past few months are any indication, perhaps their surveys were mistaken with GM.

Then again Mr. Z06 , I can safely say we both have our biases.

G/O Sucks > Jonathon Klein 06/18/2014 at 15:39

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"But while lawmakers and pundits are outraged, does any of it really matter when GM's sales are consistently through the roof?"

What kind of morally-challenged sick f*ck thinks that after so many deaths and injuries? Seriously, making money for shareholders isn't the extent of corporate responsibility and selling cars to fools who trust you anyway doesn't make the case otherwise.

Rachel J. Hickman > Jonathon Klein 06/18/2014 at 15:42

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Start working at home with Google! It's by-far the best job I've had. Last Wednesday I got a brand new BMW since getting a check for $6474 this - 4 weeks past. I began this 8-months ago and immediately was bringing home at least $77 per hour. I work through this link, go to tech tab for work detail

 http://w­­­ww.jobs700.com

JLZ06 > Kruezerman 06/18/2014 at 15:44

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To be clear, I like vettes and camaros. I own both. Thats about as far as I go into GM bias. But you realize that this recall situation is a result of old GM bullshit management that got them to the shitter in the first place. The reality is GM as a company is truly making strives to improving their image and as a car company you start doing this by making a better product. Their sales numbers and now this JD power report shows the results of these efforts. So I reiterate my original point. In the past what you said was true. But it is simply not the case today.

Jonathon Klein > G/O Sucks 06/18/2014 at 15:49

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Does it matter to GM, not to the general public. Also where is the frustration and outrage over all the other things that kill people throughout the known universe that are caused by corporations?

GP > Jayhawk Jake 06/18/2014 at 15:55

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I think that's the issue but GM is getting all the press but look at the recalls across the industry. Lets get everything out all at once, take one large charge for one quarter get it out the way. I saw a demonstration of a Cobalt with the bad ignition, by switching to a different style key the person pulled and pulled until the key ring broke and couldn't get the ignition to switch off. But GM to make some changes to much bureaucracy and a silo still mentality will hurt them in the end.

Doomed Guru > Jonathon Klein 06/18/2014 at 15:56

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you forgot to add "...while texting."

Logansteno: Bought a VW? > Jonathon Klein 06/18/2014 at 15:56

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Here's how I see it, bad press is still press. Gets people thinking about GM.

Then you have the owners of the recalled cars. I have a feeling a lot of them are trading in their old Ions and Cobalts and getting something new, a Cruze, Spark or Sonic, most likely.

I'm sure the big rebates GM always does in May helped those sales numbers as well. But like other people said, the whole industry is up.

mashthegas123 > Jonathon Klein 06/18/2014 at 15:58

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Yep. Despite the best efforts of the incompetent, fear-mongering media (not to mention the shyster lawyers), GM isn't doing too bad.

Stiiles > Jonathon Klein 06/18/2014 at 15:58

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In theory, sure - which is what some of the GM engineers said in their internal memos. In real world conditions when you're not expecting it, you're in fast traffic and you need to stay in your lane for a sharp curve and/or need to slow down suddenly... not so much. Don't take my word for it, try it yourself sometime, preferably in a big empty parking lot.

deekster_caddy > MEESTALUBBA 06/18/2014 at 16:03

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lost our ass? Considering how bad things might have become if GM folded, and that the gov't got a very high percentage of their money back overall, I would disagree. On a 49.5B bailout, they "only" lost $10B. That's an 80% return, for having one of the U.S.' largest employers not fold. Not good, but not horrible either when you consider the Billions and Trillions that go to waste. There's a lot to criticize about government spending, but the GM bailout was a drop in the bucket. I am positive the government has wasted more than $10B on other projects that didn't work out. $10B is a number that gets 'lightly' tossed around quite frequently these days when it comes to government money. (I'm not encouraging that, $10B is a lot to you and me, but keep this in perspective.)

Jonathon Klein > Stiiles 06/18/2014 at 16:03

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My drivers ed teacher did it to me on the highway like 4 or 5 times.

deekster_caddy > Jonathon Klein 06/18/2014 at 16:04

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Personally, I see all the recalls as a reason to have even more confidence in a new GM vehicle. They are taking this shit very very seriously and making it known to everybody. That and I have a '13 Chevy Volt that backs up the quality they can produce in a new car. Absolutely amazing.

G/O Sucks > Jonathon Klein 06/18/2014 at 16:05

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Again, "what kind of morally-challenged sick f*ck thinks that"? Also, nice try to change the subject. Let's stick with GM and their managers' moral responsibility to not kill people and cover it up before moving on to the abundant frustration with other corporate malfeasance.

Stiiles > Jonathon Klein 06/18/2014 at 16:05

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At night, in the rain, on a crowded highway, right?

G/O Sucks > Jayhawk Jake 06/18/2014 at 16:09

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I wouldn't call your car shutting off a "stupid little thing" when it nixes your power steering, power brakes, traction control systems and shuts off all the airbags at the same time. THAT is why this whole thing started. That kind of need for a fix isn't "stupid" and it definitely isn't "little."

NinetyQ > yester 06/18/2014 at 16:11

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The problem wasn't solely that the engine turned off because of the ignition switch and then people died because of it. It was that the ignition switch was jostled or bumped in the event of an accident, and then the engine turning off also deactivated the airbags and other safety components. If you stall your manual car, the ignition (and thus airbags) are still on.

Patrick George > G/O Sucks 06/18/2014 at 16:11

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The trend over the last 30 or years or so in corporate America is pleasing your shareholders above all else — and that corporate responsibility ends with that alone. Yeah, it's totally morally reprehensible, but for a lot of people in this country it's just business as usual.

Jonathon Klein > Stiiles 06/18/2014 at 16:12

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Totally! It was like 3am and torrentially pouring and snowing all at the same time, and uphill!

Jonathon Klein > G/O Sucks 06/18/2014 at 16:13

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I tried. I wonder how many people die from automaker recalls each year, or not fixing their recalled cars? It would be interesting.

G/O Sucks > yester 06/18/2014 at 16:19

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A little critical thinking on your part would reveal that a car with the ignition off has steering that suddenly becomes extremely heavy and wants to go straight, brakes that become more of a wish, and airbags that no longer activate. Three seconds of that and you're in the other lane, into an oncoming truck or crushed against your steering column, easy.

ADabOfOppo; Gone Plaid (Instructables Can Be Confusable) > Patrick George 06/18/2014 at 16:21

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Which is really, really sad when you think about how much better-off everyone could be if we stopped caring only about shareholders so much.

G/O Sucks > Jonathon Klein 06/18/2014 at 16:21

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Okay, is that after your steering went heavy and your car goes straight into oncoming traffic without proper brakes or airbags? I just want to get the sequence right...

Stiiles > Jonathon Klein 06/18/2014 at 16:26

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Awesome. Because your individual experience in a controlled situation is what always happens, right? I think you understand the point.

Jayhawk Jake > G/O Sucks 06/18/2014 at 16:26

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I wasn't referring to that Mr. Pedantic.

Jonathon Klein > G/O Sucks 06/18/2014 at 16:28

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Key off, no power steering at all, on the highway, shifted into neutral, key back on, and continued. I'm not saying it didn't scare the living hell out of me

Jonathon Klein > Stiiles 06/18/2014 at 16:28

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It was on the highway around rush hour the first time he pulled it on me.

G/O Sucks > Jonathon Klein 06/18/2014 at 16:33

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"How many people die from automaker recalls"?

Not sure what you mean there but as to the second point, not nearly as many as those who died from this catastrophic failure to recognize a fatal safety issue. Most recalls involve basic reliability issues relatively soon after purchase — A bolt not torqued to spec, a possible leak, etc. They aren't 10 years in the making, tens of millions of people affected, or catastrophic if the issue arises.

BTW, since you didn't look beyond GM's website for info... Their brand health has taken a hit and their resale prices are plummeting on affected models. That means higher leasing costs and, over time, lower sales, transaction prices, higher marketing costs, etc. This is far, FAR more complex than your post covered.

G/O Sucks > Patrick George 06/18/2014 at 16:34

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It's been a lot longer than 30 years and since when does that mean you guys give 'em a pass? Just wondering.

misterdeuce > Stiiles 06/18/2014 at 16:39

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As long as you're going over 15 MPH loosing power steering is a non issue, the faster you go the less you need it. I drove a car with broken PS for a year and a half and the only part that really sucked was parking lots and parallel parking. There are not speeds at which you can easily kill yourself. I think the real issue with the ignition getting turned off is the steering wheel lock. Really gonna suck if you're going 45 and you CAN'T TURN THE STEERING WHEEL BECAUSE IT LOCKED. Loosing power brakes sucks, but you can still make the car stop, just hit the brakes harder.

G/O Sucks > Jayhawk Jake 06/18/2014 at 16:40

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"Rather than trickle out a bunch of recalls for stupid little things (your Camaro might shut off if you somehow manage to knee the key?!) , they're just saying eff it, fix everything now and be done with it."

It's not pedantic to point out a giant flaw in your argument. These aren't "cover your ass" recalls, they're catastrophic failures demanding serious action. There's no possibility of a "trickle."

Patrick George > G/O Sucks 06/18/2014 at 16:43

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I'm definitely not giving them a pass at all; it's not my job to do that, in fact quite the opposite. I'm merely playing Devil's Advocate here. I think it's reprehensible to view your duties as a company that way.

Jayhawk Jake > G/O Sucks 06/18/2014 at 16:48

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That Camaro recall is a joke. Have you tried to knee the key in a Camaro? It's possible, but you'd have to be doing something really, really stupid to do so.

This is a cover your ass recall. The Camaro one probably came from either some GM engineers checking ignition switches in every model and realizing that 'well yeah, you could knock it off', or one idiot did something stupid enough to shut off the ignition in a Camaro with his or her knee.

Therymare > Jonathon Klein 06/18/2014 at 16:49

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last pay check was $9500 working 12 hours a week online. My neighbour's sister has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out.This is what I do,,,,,,,,,,

www.bam80.com

DAKINS124 > G/O Sucks 06/18/2014 at 17:03

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Perhaps not everyone sees a stalling car as potentially life threatening? Perhaps most people actually know what to do in said situation?

RazorGP > Jonathon Klein 06/18/2014 at 17:22

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Still confused as to why anyone would buy the same brand of car that just had you driving a death trap for the last few years over a sub $1 part.

MEESTALUBBA > deekster_caddy 06/18/2014 at 17:26

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if "if's" and "but's" were candy and nuts, we'd all have a merry christmas! you don't know how a real bankruptcy might have played out. many companies emerge much stronger. being ok with wasting a billion here because someone else is wasting 10 billion over there is a piss poor way to run your lemonade stand.

NO > yester 06/18/2014 at 17:37

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I think the point is that the switch won't stay engaged in the event of a crash — meaning that airbags and such stop working

Jonathon Klein > G/O Sucks 06/18/2014 at 17:37

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I was thinking of all the safety recalls issued by automakers. How many of them those issues have caused deaths. Resale value is going down, that's why you had the 10 billion lawsuit I mentioned above. I think they might see a dive, but I doubt it will be that large.

RichardNixon72 > MEESTALUBBA 06/18/2014 at 17:43

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And I as an American taxpayer would gladly give MORE money to help an American company versus, say, contributing to some UN slushfund, bailing out another bank, or building public works in the Middle East that we're going to smart bomb in another five years.

At least I can DRIVE my contribution...

G/O Sucks > Jayhawk Jake 06/18/2014 at 18:03

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WTF? This isn't about knees dude, it's about a switch that turns itself off from a key chain, a bump in the road, or from wear. People didn't crash because their knee hit the key, it turned off without notice.

G/O Sucks > DAKINS124 06/18/2014 at 18:07

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Only a GM attorney, dude. FYI, it's not a "stall" and most people aren't car fanatics like us who miiiiight be able to react in time on a corner. A stall would be MUCH better as it doesn't turn off all the other systems. When the key physically turns, it shuts off everything, in some cases even locking the steering wheel! Steering, brakes, airbags and electrics are needed, even for attorneys.

Buckus > Jonathon Klein 06/18/2014 at 18:09

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"GM. Oh, you mean that company that makes trucks. Wouldn't touch them with a ten foot pole now. I'll stick to Chevy's, thank you very much."

*palmface*

TotallyLogical > JLZ06 06/18/2014 at 18:11

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Try Consumer Report. For anything that relates to reliability, they are the king (yes I know the claims 1. biase against US cars 2. favor boring sedans blah blah). I am talking about build quality/reliability here.

SuperBudgie > stoke 06/18/2014 at 18:36

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"Not trying to downplay that GM's sales are improving in spite of the crisis"

You arent?

Lokki > yester 06/18/2014 at 18:46

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Yup, that's just no big deal when you're in the middle of six lanes of traffic going 70 mph here in Dallas and your engine dies. Just put on your flashers and everything will be just fine.

Jayhawk Jake > G/O Sucks 06/18/2014 at 18:56

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Two separate recalls dude. I'm not talking about the Cobalt, that's a bad situation all around and I'm not denying it. Almost all of the recalls that have followed have been nitpicky sort of things like the Camaro ignition in which you might hit the key with your knee, shutting the car off as a result

ranwhenparked > Jonathon Klein 06/18/2014 at 19:00

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"How to Fix GM" - you know, I believe this is the 3,187th article published since 1974 with that exact title.

deekster_caddy > MEESTALUBBA 06/18/2014 at 19:01

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Like I said, I'm not okay with "wasting a billion" anywhere, and yes - who knows how a real bankruptcy might have played out. But the number of affected people goes way beyond GM and their direct employees - bankruptcy would have taken GM off the hook for paying many of their parts suppliers as well, and caused pretty massive closures all around this country (and others). I was not in favor of it when it happened, but in hindsight I think the price paid was not as bad as a bankruptcy could have been. So be it, we will have to agree to disagree, but I don't see it as wasted.

Lokki > Jonathon Klein 06/18/2014 at 19:04

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I think you might want to look a little deeper at why GM is making a lot of sales. A lot of those sales come from the fact that GM has gone back to its old bad habit of selling mainly to buyers with subprime credit : http://money.msn.com/investing/post…

"Almost 76 percent of GM's consumer loan portfolio at the end of June, up from 65 percent at the end of 2011 , consisted of borrowers who are more likely than not to go seriously delinquent. Though the company's reduced disclosure prevents us from knowing for certain, that percentage was probably higher in September.

History shows that many delinquent borrowers will go from being behind on their payments to not making them at all. GM is keeping its assembly lines running on a huge gamble that their number won't be significant, and that its losses on the repossessions which do occur will be immaterial. That bet, in turn, depends heavily on a belief that an economy with the worst post-recession recovery since World War II won't flatten out or go back into the tank."

TL/DR: An awful lot of people buying GM cars are buying them because GM will give them credit when nobody else will. If anything happens to GM's ability to finance them, it's 'game over' (Again) for GM, cause not many people (outside Corvette and Camaro drivers) are buying GM cars because they like them.

MGBhoon > G/O Sucks 06/18/2014 at 19:46

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My car doesent have power steering, power brakes, traction control, airbags or even a roof and I havent killed myself yet in it....

MGBhoon > Jonathon Klein 06/18/2014 at 19:54

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I also don't get the GM loyalty...my parents had an 01 Tahoe...transmission failed at 70k miles. They bough a 08 GMC Acadia...transmission just failed last month with 57k miles on it. What do they do? Obviously, they went out and purchased another brand new Tahoe. I mean, they raised me so i know they aren't dumb, but I can't explain that....

Lokki > MGBhoon 06/18/2014 at 20:57

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Yet......

Reckoning Day > Jonathon Klein 06/18/2014 at 21:31

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Now really, you all know you're just jealous....

Jonathon Klein > Reckoning Day 06/18/2014 at 22:27

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Totally, they're worth billions, I'm worth about a nickel.

daflehrer1 > Jonathon Klein 06/19/2014 at 00:16

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As to the missive, I don't agree with the premise.

A recession coming to an end is always followed, or parallels, an increase in new car sales. As to fleet sales, they're more difficult to change than you or I deciding to replace my old GMobile with a Jetta, as it is a very big financial decision. Further, many of GM's models have nothing to do with the ignition switch issue. Brand loyalty, especially with trucks, is strong. Last, short term sales figures are an inadequate measure of a corporation's overall health. So stating that GM does not need to change is a bit too simplistic, and incorrect.

Brent M. Woods > Jonathon Klein 06/19/2014 at 00:34

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My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.Fund25.com

G/O Sucks > MGBhoon 06/19/2014 at 00:48

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"Yet!" Your car was engineered that way. You expect it to operate that way. There is no surprise when you turn, brake and accelerate (though it's an MG, so obviously there may be some mild surprise! /JK).

When the power steering gets killed on a modern car, two things happen: 1. It gets extremely difficult to turn. 2. Its natural tendency to go on center is far more forceful. That means if you're in a turn, you could suddenly be in the other lane, the steering won't respond to your expected input and — surprise! — your brakes barely work with expected input, causing a crash that — surprise again! — does not trigger the airbags.

RosarchII > Whats-His-Nuts 06/19/2014 at 04:16

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I am hoping you learn how to spell hoping:)

Jonathon Klein > daflehrer1 06/19/2014 at 08:00

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At what point is the recession coming to an end? Maybe from some people, as for the massive group of Millenials coming out of college or have been out of college for the last few years, you're still fucked and fucked hard.

JLZ06 > TotallyLogical 06/19/2014 at 09:16

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How about no. You just said they are biased, so why would I depend on them for studies? As far as I can tell, JD Power shows no bias.

Reckoning Day > Jonathon Klein 06/19/2014 at 10:15

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Did I mention Corvette ZO6 ?

Jonathon Klein > Reckoning Day 06/19/2014 at 10:40

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So want to try, just the normal Stingray is bonkers, that has to be insane

offyatindy > Jonathon Klein 06/19/2014 at 11:03

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I see another bailout - or worse - in GM's future if they don't change. So, GM reports its best sales since August 2008. Did not the economy hit the fan immediately after August 2008? A good month in a good market means nothing. How will GM do when the economy goes south? And it will. It always does. Regularly, every 8 years. GM got a second chance with the first bailout. Hopefully they are the New GM now and can stay alive in a down market. I'm not optimistic.

DAKINS124 > G/O Sucks 06/19/2014 at 12:53

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I drive one, I'm under no illusions that I will die if the key slips, (my ignition is from the later models so that won't happen anyway). I'll simply pull over or restart the car. It's not a life threatening problem, unless you don't have any idea how a car works and don't know how to handle the situation.

You can still steer and brake in that situation, the fluid in the systems don't magically disappear just because the key moved, and if someone is traveling fast enough to cause a deadly crash, the electric steering assist is doing basically nothing anyway.

Charge It! > Jonathon Klein 06/19/2014 at 17:14

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It's a shame that a company that got large by making a lot great looking and performing vehicles has turned into one that makes mostly average performer with average reliability (improved from poor) and average looks (I am bein generous as this is subjective) and a bunch that don't have much of any of those three.

G/O Sucks > DAKINS124 06/19/2014 at 18:08

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You're deluding yourself and/or don't know how cars work. This is akin to having a blowout at highway speeds. "I'll simply pull over" is what my great uncle used to say about why he didn't wear a seatbelt — "I'll just steer around the accident!" He's dead for that silly notion. If you're lightly holding your wheel and it goes dead, you'll be in the other lane and hitting near non-existent brakes before you can say "wait, what the..."

BTW, most of these cars aren't electric assist (that's only the newest vehicles) and that fluid without an operating pump actually resists inputs MORE. My properly de-powered Miata steering rack is relatively easy to steer but it was not at all with the fluid just sloshing around. And the brakes? Try 4X the necessary weight. Not exactly a good combo of failures for, say, your mom or your 16 year old sister driving home one night...

DAKINS124 > G/O Sucks 06/19/2014 at 22:05

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100% of Cobalts have electrically assisted steering.

Again, power steering assists more at lower speeds, making any high speed accident that could cause death far less applicable to it's failure.

It's not even close to a tire failure, and your situation about steering out of the way of an accident silly and unrelated to this recall, which states that the accident was caused by the lack of assisted steering itself.

Again, turn off your car while stopped and put your foot on the brake, you will find you have at least one full application of the brakes (which is done purposefully for safety reasons) before the system's fluid is stopped by the valving.