The American automobile giant General Motors has issued a recall on 60,000 Chevy Malibu sold across North America. GM states that a computer defect would cause windshield defrost problems, which will in turn affect the drivers’ fields of vision while they are driving. Accidents stemmed from this systematic error have yet been reported.

While recalling defected cars is a responsible and ethical act conducted by GM, I expect that the company will lose a lot of profit, not only from the labour cost needed to cover the recall, but also from the decline of customer confidence. When a major recall occurs, consumers are less tempted to buy vehicles from that company because they are reluctant to become involved with the possible future recalls. In addition, a sharp decline in consumer confidence is likely to cause a major decrease in the company’s stock value because share holders no longer believe the company is able to gain much profits. Therefore, GM will suffer a lot from the recall.