Will GM's reputation survive recall? - 21 News Now, More Local News for Youngstown, Ohio -

Updated

Will GM's reputation survive recall?

Posted: Updated:

LORDSTOWN, Ohio - General Motors is asking its dealers to stop selling some of its Chevy Cruze models, but the company isn't saying why.

The Cruze is a top-seller for GM, built in the valley's backyard. 

GM's stop sale order was issued Friday to dealers across the country. It covers the 1.4 liter turbo models. While some local dealers tell me these orders are routine, one industry expert believes GM is on a path to prove they're proactive with vehicle problems and this could just be one example of the extra steps they're taking.

"They're going to be extra vigilant not only in announcing recalls in the future, but really showing lawmakers and regulators that they get this," Phil Lebeau says, CNBC auto industry reporter.

Only 15 of Greenwood Chevy in Youngstown's 60 Cruze models are effected by the stop sale order. The notice comes on the heels of a record Cruze sales month for the dealership.

A recall last month of 1.6 million vehicles tied to at least 12 deaths, includes some cars built on the assembly line in Lordstown.

Lebeau says recalls have hurt automakers in the past, but historically, they bounce back.

The biggest question that remains, will the customers?

"General Motors realizes that its reputation is at risk and it may not be a case where the company goes out of business, but it could lose customers in the near future and those customers may not come back to the company for years," Lebeau says.

GM CEO Mary Barra is gearing up to face potentially painful questions next week on Capitol Hill on the deadly ignition switch defect in its recalled models.

Lebeau expects Barra to face a number of questions focused on how the company handled this recall.

"You'll also see a lot of hard questions being asked about 'how can you be sure this won't happen again?'"


  • More From wfmj.comMore>>

  • Police: Couple used dog to lure 2 Amish girls

    Police: Couple used dog to lure 2 Amish girls

    Thursday, August 21 2014 10:04 PM EDT2014-08-22 02:04:19 GMT
    A woman accused along with her boyfriend of abducting and sexually abusing two young Amish sisters is due in court for a preliminary hearing.More >>
    A northern New York couple used a dog to lure two Amish sisters from their family farm stand with a plan to turn them into slaves, an investigator said Thursday.More >>
  • State won't sell naming rights for Ohio Turnpike

    State won't sell naming rights for Ohio Turnpike

    Thursday, August 21 2014 9:30 PM EDT2014-08-22 01:30:13 GMT
    Ohio will pursue opportunities to collect revenue through sponsorships along the state turnpike but will not sell naming rights for the 241-mile toll road.More >>
    Ohio will pursue opportunities to collect revenue through sponsorships along the state turnpike but will not sell naming rights for the 241-mile toll road.
    More >>
  • Ohio State president meets with band leaders

    Ohio State president meets with band leaders

    Thursday, August 21 2014 9:23 PM EDT2014-08-22 01:23:42 GMT
    Courtesy:  NBC NewsCourtesy: NBC News
    Student and staff leaders of the Ohio State marching band have met with the university's president to share concerns over the firing of a popular band directorMore >>
    Student and staff leaders of the Ohio State marching band have met with the university's president to share concerns over the firing of a popular band directorMore >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms