The Department of Justice is looking at all of this and recall that just a few weeks ago Toyota paid a $1.2 Billion fine for its sticky gas pedals. GM will likely pay more than that when it's all said and done..
The consent order makes sense, media relations experts told us today. It happened today and not six months from now. But GM’s problem is that this is turning into death by a thousand cuts and this one is just one of the first.
Warren Buffett had Berkshire Hathaway sell off much of its stake in GM today.
Ironically, in the showroom, in the factory, and in the design suites GM has never been better. It’s new Impala is considered the best sedan on the road. It’s quality scores are top notch, and yet it must agree with a federal official who says “the fact that GM took so long to report this defect says something was very wrong with the company’s values. GM must rethink the corporate philosophy reflected in the documents we reviewed.”
Mary Barra’s tepid response, which came in the form of a statement in a press release, does little to help the company’s reputation.
“GM's ultimate goal is to create an exemplary process and produce the safest cars for our customers- they deserve no less. We will emerge from this situation a stronger company," she said.
Perhaps, but this is the Perfect Storm for GM. It is battered like one of those boats on the reality show “Deadliest Catch."
At least those guys are prepared for that weather. In comparison, GM looks like guys in penny loafers and Dockers trying to lay a string of pots.
This is not going at all well.