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General Motors Discloses Cost of Product Recalls

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Last year, in what was billed by business and general media as the worst U.S. product safety crisis in recent memory, a series of large scale product recalls among multiple General Motors brands involving upwards of 2.6 million vehicles brought this company to crisis footing as it attempted to restore consumer confidence and establish a new footing for growth. The defective ignition switch recalls involving thousands of vehicles triggered consequent increased regulatory and business media scrutiny. An additional response among GM’s product teams was to subsequently review all potentially harmful vehicle safety and parts quality issues and err on the side of caution with even more product recalls involving multiple parts issues. In conjunction with its earnings reporting in October 2014, CEO Mary Barra assembled the company’s top 300 executives to declare that that the company must do what it takes to be the “world’s most valued automotive company”.  That […]


Revelation That GM Ordered Replacement Ignition Switches Weeks Before Formal Product Recall

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In our ongoing observations of global business developments and the linkages to the areas where supply chains do matter, this editor has been amused as to how equity analysts and business media now hone-in on a company’s supply chain information leaks to uncover information on a particular firm.  To cite an example, Apple’s supply chain across Asia has had numerous information leaks regarding potential new products or supply chain glitches related to Apple. Supply Chain Matters readers have most likely been following our ongoing commentaries relative to the current crisis that has impacted aftermarket service supply chains within the automotive industry. An explosion of various automotive model recalls has cascaded to unprecedented levels. Beyond the current air bag deflator issues surrounding supplier Takada, lest we forget the incidents of faulty ignition switches leading to a multitude of product recalls involving multiple models of General Motors vehicles. In what we can […]


General Motors Attempts to Turn to a New Chapter of Growth, Customer Loyalty and Supply Chain Practices

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The public relations teams supporting General Motors have been in high gear these past weeks for obvious reasons.  Lapses in product design and quality management practices, and what has been billed by business and general mediaas the worst U.S. product safety crisis in recent memory has led to a series of product recalls among multiple GM brands involving upwards of 2.6 million vehicles. GM desperately needs to move beyond its current state and restore confidence in its brands and in its business management model.  Suppliers and partners associated with supporting this U.S. based OEM need to also move on to more collaborative and win-win relationships, but that requires a different GM perspective. When Mary Barra was appointed CEO of General Motors, this author communicated our Supply Chain Matters elation for this announcement. Our enthusiasm came from the dual fact that not only was Barra the first senior female executive ever […]


Service Supply Chains Put to the Ultimate Stress Test in the Automotive Industry

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Across the United States, besides the U.S. team’s accomplishments in the World Cup competition, another dominant traditional and social media based news headline reflects of the incredible number of automobiles and trucks being subject to product recall.  The primary story focuses on General Motors, which after intense scrutiny from U.S. regulators and legislators regarding faulty ignition switches among multiple models, is recalling all sorts of models that are believed to have been exposed to a component design problem, faulty ignition or otherwise. Thus far in 2014, GM has announced 44 product recalls involving nearly 18 million previously sold vehicles. Today’s social and business media buzz blares that the vehicles been recalled thus far is more than the total number sold in the U.S. in 2013.  In a previous Supply Chain Matters commentary, we called attention to product recalls involving airbags supplied by Japan based Takata Corp. that were expected to […]


What Comes Around: A Rating of Automotive OEM’s from Suppliers

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A posting on Supply & Demand Chain Executive highlights the results of the 14th annual North American Automotive Tier 1 Supplier Working Relations Index, which is an industry study on the major U.S. and Japanese automotive OEM’s relationships with suppliers. This annual study focuses primarily on OEM’s Chrysler, Ford, General Motors, Nissan, Honda and Toyota which currently comprise upwards of 80 percent of U.S. vehicle sales. This ranking study is rather significant since it ranks purchasing top leadership, buyer behavior and transparency and other factors that lead to perceived positive supplier relationships. The article highlights that both Toyota and Honda’s efforts to improve supplier innovation and relationships have, once again, gained the upper hand. Both OEM’s are ranked first and second respectively with Honda rated as “most preferred” customer among all OEM’s rated. Honda’s increase was reported to come primarily to improvements in three foundational key areas: supplier relationship, supplier […]


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