GM recall: How bad is it?
Updated On: Mar 17 2014 11:46:09 PM EDT
It's no longer a recall, it's a crisis. General Motors issued another recall Monday for 1.7 million vehicles in addition to the 1.6 million vehicles its already recalled for a serious ignition switch problem.
This new recall targets several issues, not the ignition switch.
Ignition switch safety information: GM launches website for consumers
Are GM's woes as bad as Toyota's sudden acceleration nightmare or the Ford/Firestone fiasco? The simple answer from the professionals is yes.
"This ranks as bad as any of them because it hasn't been able to be contained yet," said Mike Bernacchi of UOFD.
CEO Mary Barra took to the airwaves to try and get out in front of this crisis and accept responsibility for a problem that first surfaced in 2001.
"As a member of the GM family and a mom, this really hits home for me," Barra said. "We have apologized but that is just one step in the journey to resolve this."
Bernacchi gives Barra an "A" in crisis management for the problems at hand.
"The fact that is she's been able to meet these challenges head on and continue to do it on a day by day basis," Barnacchi said.
He sees her genuine nature and willingness to come forward and admit mistakes have been made as the key to the company's survival.
A federal investigation and a criminal investigation have been launched into the faulty switches that have killed 13 -- potentially more -- and now a new recall that's been issued for 1.7 million more vehicles over concerns about wires harnesses to airbags and other issues.
"The bottom line is we will be better -- just that," Barra said.
View: GM report