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General Motors : The Oldest Automobile Line Continuing Operations Essay

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Introduction and Problem Statement General Motors is one of the most revered automobile manufacturers in the United States, if not in the world. One of its lines of vehicles, Buick, is the oldest automobile line continuing operations in the country today. General Motors has recently made a number of changes to its business practices in the recent years. However, it still has a number of difficulties to overcome. The primary problem facing this company today is the abundance of negative publicity, regulatory fines, and financial problems it has seen in the wake of a highly publicized recall of automobiles with faulty ignition switch and airbag issues. It faces the challenge of remaining a viable alternative for purchasing vehicles for a customer base that is aware of these safety issues. Additionally, the company is still trying to restore its reputation from its bankruptcy declared at the end of the last decade, and which it was able to just overcome at the end of 2014 by repaying the federal government the funds they had supplied. Addressing these issues requires the company to focus on the manufacturing and selling of vehicles at a time when its professional reputation is in considerable doubt. Financial Analysis: Factory Recall The data that emphasizes the tarnishing of General Motors’ reputation because of its factory recalls is critical. The case study indicates that GM experienced issues with its ignition switch since at least 2004, and only issued the recall earlier
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