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>>

  • Three siblings dead in Philadelphia carjacking

    Three siblings dead in Philadelphia carjacking

    Friday, July 25 2014 10:35 PM EDT2014-07-26 02:35:30 GMT
    In what Philadelphia police are describing, as one of the saddest cases they've ever seen, three siblings are dead after a carjacked SUV plowed into their family.More >>
    In what Philadelphia police are describing, as one of the saddest cases they've ever seen, three siblings are dead after a carjacked SUV plowed into their family.More >>
  • 6 hurt when truck hits Dairy Queen near Pittsburgh

    6 hurt when truck hits Dairy Queen near Pittsburgh

    Friday, July 25 2014 1:01 AM EDT2014-07-25 05:01:26 GMT
    PITTSBURGH (AP) - Authorities say six people were injured and a gas line was damaged after a truck crashed into a Dairy Queen in suburban Pittsburgh. The Pittsburgh Post-Gazette said the incident occurred shortly before 3 p.m. Thursday in Penn Hills. A witness tells the newspaper that she was able to help an employee get out through a window after a cash register fell onto her. That employee, the manager and four men in the truck were taken to hospitals. The newspaper says firefighters secur...More >>
    PITTSBURGH (AP) - Authorities say six people were injured and a gas line was damaged after a truck crashed into a Dairy Queen in suburban Pittsburgh. The Pittsburgh Post-Gazette said the incident occurred shortly before 3 p.m. Thursday in Penn Hills. A witness tells the newspaper that she was able to help an employee get out through a window after a cash register fell onto her. That employee, the manager and four men in the truck were taken to hospitals. The newspaper says firefighters secur...More >>
  • UPDATED

    Ohio State marching band director fired

    Ohio State marching band director fired

    Thursday, July 24 2014 8:49 PM EDT2014-07-25 00:49:54 GMT
    Ohio State University fired the director of its celebrated marching band on Thursday amid allegations he knew about and ignored "serious cultural issues," some involving rituals where students were pressured to march in their underwear or participate in sexually themed stunts.More >>
    Ohio State University fired the director of its celebrated marching band on Thursday amid allegations he knew about and ignored "serious cultural issues," some involving rituals where students were pressured to march in their underwear or participate in sexually themed stunts.More >>
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