Week 11: Shortages and Emissions Battles

In a relatively slow week for General Motors, at least in terms of stories from the Wall Street Journal, the auto maker’s stakeholders are still being affected by the company’s actions.

Image result for gm cars awaiting repair
Amanie Mokdad’s 2018 CT6 sedan is still awaiting parts for repairs after a driver rear-ended her on September 1. (Photo: Amanie Mokdad)

            Up until now, this blog has only discussed the ramifications of the strike in terms of two parties: GM and the UAW. However, the strike of course also affects customers. Jamie LaReau of the Detroit Free Press has spent time speaking with both auto-repair shops and ultimate consumers about their experience. Amanie Mokdad recently leased a Cadillac from General Motors. In September, she was rear ended, she has now, “waited 10 weeks for her car to be repaired,” (Detroit Free Press). According to Mokdad, “GM still has not delivered the parts … to fix her car or given her answers on a repair or a loaner car,” (Detroit Free Press). Apparently, this is not an isolated incident, “GM dealers report dozens of customers have been waiting … for repairs that can’t happen until GM delivers parts,” (Detroit Free Press). GM claims that they are working on getting back to normal as quickly as possible, but some dealers disagree. Lynn Thompson, co-owner of a car dealership in Springfield, Missouri, is quoted by the Detroit Free Press as saying, “we’re told it’ll take three to four months to get back to normal.” The strike may be over, but many stakeholders, besides UAW members, are still feeling the effects as they wait for production to get back to normal.

In another state, California recently announced a decision that state agencies, “will stop purchasing vehicles from carmakers that haven’t agreed to follow California’s clean car rules,” (Cal Matters). This decision is important because it, “affects General Motors, … and multiple other automakers that sided with the Trump administration in the ongoing battle over tailpipe pollution rules,” (Cal Matters). General Motors should be particularly concerned because, “California spent more than $27 million on passenger vehicles from GM-owned Chevrolet in 2018,” (Cal Matters).

            All in all, this week was rife with bad news for or about General Motors. Customer relations, which are very important for any company, are clearly taking a hit. As are revenues, since a customer which formerly spent $27 million on GM products will no longer do so. General Motors will have to adapt and respond to these instances to keep themselves in the public’s good graces.

Sources:

https://www.freep.com/story/money/cars/general-motors/2019/11/16/gm-strike-repair-parts-delay-uaw/4201708002/

https://www.calmatters.org/environment/2019/11/california-says-it-wont-buy-cars-from-gm-toyota-others-opposing-tough-fuel-standards/

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