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Final Essay

1116 Words5 Pages

The major business incident that would be discussed and analyzed in this essay is the recall crisis at General Motors Company in 2014. The way the incident was resolved and handled would be also be analyzed in this essay.
History
General Motors Company formerly referred to as General Motors Corporation, is one of the world’s largest motor-vehicle manufacturers. General Motors (GM) headquarters is situated in Detroit Michigan, the company manufactures, assembles and distributes in the United States, Canada, and many other countries. GM major productions are automobiles and automobile machinery.
The company was founded on the 16th of September 1908 under the control of William C. Durant. The company was founded to merge several motorcar companies …show more content…

The company continually recalled its cars within the next few months. By August 2014, 16.5 million cars had been recalled for ignition-related defects (Ivory, 2014). The US Attorney Kenneth Feinberg announced, 229 deaths and 1,986 injury claims had been made in December 2014; at least 36 people had died and 44 had been seriously injured in crashes due to problematic ignition switches (Guardian, 2014). Most importantly, this ignition fault was known to GM since 2001 (Ivory, 2014), but the company did not announce any relevant recalls until 2014 when several investigations were conducted. GM was blamed by the public for hiding the facts of ignition switches and delaying products recall. GM’s reputation quickly came into focus in 2014’s large scale and costly recall. The company faced harsh disparagement for waiting 11 years to begin recalling cars with switch-ignition problems that resulted in fatalities that could have been avoided if the company responded earlier to the switch-ignition problem that caused a lot of casualties (Ben Geier, …show more content…

Mary Barra headed GM perhaps at the most challenging time in GM’s history, perturbed by bankruptcy the company went through a few years earlier. Mary Berra faced the Congress a lot of times and faced the anger of the United States public. When Mary Berra appeared in front of the Senate in June, Senators critically attacked GM in general. But Mary Barra was unperturbed; she was simply calm under enormous pressure. Mary Barra kept her reputation intact by being straightforward, humble and showing a sincere desire to basically change the errors that led to the problem at

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