General Motors have been forced by a judge’s ruling to offer their customers a payment as a result of defective models in the cars they sold. What makes the case even more astounding is the fact that, according to the court’s ruling, General Motors were aware of the defect and sold the cars with the knowledge that the component would not work. Leaving their valued, loyal customers out of pocket having to pay for repairs themselves. They are a giant in the automotive world, particularly in the US market. What effect will this have?
What has led General Motors to this payment to their customers?
The company was originally established as a holding company for Buick way back in 1908. Throughout the century the focus seemed to be acquiring other car manufacturers and incorporating them under one gasoline powered umbrella. They experienced major success and through their ever expanding network of car manufacturers were able to make significant improvements to the automobile.
In the 20th century the focus seemed to be on expansion. They acquired Opel and Vauxhall in the UK, which was a significant step into the international automotive market. They have since established themselves as a reliable car manufacturing corporation that has a long history on the forefront of the automotive innovation we can see around us.
However, in 2009 the company was forced to file for bankruptcy. Many would have thought that would be the end of the iconic Detroit brand. This was not to be the case. Their emergence into the EV market was the revolution the company needed to pull itself out of the mud. They have invested heavily into the electrification of their line up. Along with some new competitors.
Why is GM being forced into these payments by a court in the US?
The settlement stems around the 6.6L Duramax diesel engine and Bosch CP4 high-pressure diesel fuel pumps that can be found in a variety of models. The affected cars are limited to a certain number of US states however. Namely, GM-authorized dealers in California, Florida, Illinois, Iowa, New York, Pennsylvania and Texas. That is a whole lot of cars in a whole lot of states. The number of affected cars is huge.
The models include any 2011–2016 Duramax diesel Chevrolet Silverado or GMC Sierras that feature the faulty 6.6L Duramax diesel engine and Bosch CP4 high-pressure diesel fuel pumps. Which were sold with full knowledge that they would not work in those states. That is what makes this case so significant. The apparent disregard for their customers was truly remarkable for a company of GM’s stature.
The full list of affected vehicles is available on the GM Fuel Pump Settlement official website and has the public up in arms. The situation was completely avoidable if General Motors simply did what was expected of them. Heads must be rolling in the executive offices at General Motors. As they should. The effect this will have on their sales and more importantly their reputation is yet to be seen.
Can General Motors come back from this hit to their reputation?
The emergence of the EV has the American car manufacturers struggling to keep up. This new case against General Motors has given the world evidence to the fact that some companies are only concerned with their bottomline. The move into a zero-emission future requires the collective efforts of all the world’s major stakeholders. General Motors have made some mistakes before, however this might be a mistake that has consequences that General Motors will feel for some years to come. We can only speculate as to the end result.
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