Blog Post #9: Have a Safe Ride Home- GM’s Recalls
One would assume that large, well-established business will have a handle on their operations and quality-control procedures; as it was because of their seemingly good products that the company have surged to business-stardom. However, once in a while, companies let slip a few errors in judgement that will affect their future profitability because any mistakes reflects poorly upon the corporation. Such a company that could not escape from not having a clean-record is General Motors; one of the major car manufacturers in North America. Recently, General Motors had to recall several thousands of their car line, Malibu, to fix faulty defrosters and wiring. This is important to note because this affects the overall safety of the vehicle for its occupants and drivers. With lives on the line, it was especially important and crucial for General Motors to manufacture cars of the utmost quality- quality that is assured from their operations. The aspect of operations within a business setting includes sourcing appropriate materials and the transformation of the product from the inputs. From the recall notice, one can assume that General Motors’ operations has not been as prudent as it could have been, resulting in thousands of Malibus to be sent back to the factories to be repaired. not only will this result in an increase in costs, but the reputation of General Motors has been negatively affected and so its potential revenue has decreased because consumers will possibly be more wary of purchasing from General Motors (like how it was for Toyota and their infamous recalls on their brakes).
