• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO

The imperfect math of the automobile recall

By
Doron Levin
Doron Levin
Down Arrow Button Icon
By
Doron Levin
Doron Levin
Down Arrow Button Icon
May 27, 2014, 5:10 PM ET
John Chapman, shop foreman performs the service recall on a 2005 Saturn Ion at Liberty Chevrolet in New Hudson, Michigan, U.S., on Friday, April 25, 2014. General Motors is installing thousands of kits consisting of ignition switches, ignition cylinders and key sets for older model small cars subject to a safety recall. Photographer: Jeff Kowalsky/Bloomberg *** Local Caption ***
John Chapman, shop foreman performs the service recall on a 2005 Saturn Ion at Liberty Chevrolet in New Hudson, Michigan, U.S., on Friday, April 25, 2014. General Motors is installing thousands of kits consisting of ignition switches, ignition cylinders and key sets for older model small cars subject to a safety recall. Photographer: Jeff Kowalsky/Bloomberg *** Local Caption ***Jeff Kowalsky © 2014 Bloomberg Finance LP
Add Fortune on Google for similar content.

FORTUNE — Last Thursday, Toyota Motor Corp. (TM) announced a recall of nearly half a million cars around the world due to a possible defect, a noteworthy event mostly because – for a change – it wasn’t General Motors Co. recalling a vehicle.

Since January, GM (GM) has recalled 13.8 million cars and trucks in the U.S. (15.8 million globally) in 30 separate incidents, an extraordinarily large number of vehicles and incidents for the No. 1 U.S. automaker or any automaker. The actions come in the wake of February’s recall of 2.6 million vehicles due to a defective ignition switch that GM said it has known about for years. The automaker now is under civil, criminal and internal scrutiny for the lapse.

GM’s ignition-switch recall, which coincided with the first weeks in office of newly-minted chief executive Mary Barra, has created a crisis of confidence for the automaker, as well as for her fledgling tenure. Accordingly, she and her legal team have ordered heightened scrutiny of safety and recall standards, leading to the spurt of product actions. The automaker appointed an additional 35 investigators to its safety team.

GM has confirmed that more recalls are likely. The Wall Street Journal, in an analysis published last week, noted that the most recalled of its vehicles is its mainstream Malibu family sedan.

MORE: The big glitch in our auto supply chain

For years, GM has been cautious, perhaps too cautious, about issuing recalls until its engineers understood the problem, were sure that it created a safety hazard (as opposed, say, to a piece of upholstery that frayed) and knew how to fix it. In the meantime, product liability and personal injury attorneys have advanced more expansive theories about how a seemingly trivial defect could create a hazard.

Many of GM’s legal liabilities connected to defects may have been erased by its 2009 bankruptcy, which prevents plaintiffs from seeking damages from “the new GM,” the successor to the corporation that went broke. But some legal theorists have opined that the new GM could be held liable for pre-2009 cars with bad ignition switches and for vehicles with other defects if plaintiffs can demonstrate that GM knew about them and withheld the knowledge during the bankruptcy proceedings.

In the meantime, the torrent of recalls doesn’t seem to be hurting sales of GM vehicles. Consumers shop for Chevrolets, Cadillacs, GMC trucks and Buicks – the GM name is less prominent in the marketplace than in the news.

Moreover, recalls simply have become a routine feature of the retail automobile business. It’s fairly common for the buyer of a new vehicle to receive one or more letters explaining that it should be brought back to the dealer for an adjustment or replacement of a part. About a quarter of all motorists receiving recall notices never respond to them, even though repairs and replaced parts cost them nothing.

As with the uproar over Ford Explorer rollovers nearly fifteen years ago and Toyota’s unintended acceleration events of five years ago, there’s no telling how long GM will be engulfed by its recalls and the legalities surrounding them. But the matter undoubtedly will pass, accompanied by the payment of large sums, the exit from GM of more engineers and managers – and perhaps more transparency in the process of perfecting less-than-perfect vehicles.

About the Author
By Doron Levin
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Current price of Ethereum for June 29, 2026
Personal FinanceEthereum
Current price of Ethereum for June 29, 2026
By Joseph HostetlerJune 29, 2026
33 minutes ago
Current price of Bitcoin for June 29, 2026
Personal FinanceCryptocurrency
Current price of Bitcoin for June 29, 2026
By Joseph HostetlerJune 29, 2026
33 minutes ago
Coworkers watching World Cup at a bar
NewslettersFortune Workplace Innovation
How smart employers are turning the World Cup into a workplace win
By Emma BurleighJune 29, 2026
42 minutes ago
Current price of oil as of June 29, 2026
Personal FinanceOil
Current price of oil as of June 29, 2026
By Joseph HostetlerJune 29, 2026
45 minutes ago
Current price of silver as of Monday, June 29, 2026
Personal Financesilver
Current price of silver as of Monday, June 29, 2026
By Joseph HostetlerJune 29, 2026
51 minutes ago
Internet technology and people's networks use AI to help with work, AI Learning or artificial intelligence in business and modern technology, AI technology in everyday life.
AICFO Daily
AI spending boom accelerates as Big Tech pours trillions into infrastructure
By Sheryl EstradaJune 29, 2026
1 hour ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
4 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
2 days ago
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
Success
Ex-Google engineer says Larry Page, Sergey Brin and Sundar Pichai share the same trait—it's the lesson he swears by as a $7.2 billion AI CEO
By Orianna Rosa RoyleJune 28, 2026
1 day ago
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
Success
Cristiano Ronaldo is soccer's first-ever billionaire: He went from begging for burgers outside McDonald's to landing a $400 million contract
By Preston ForeJune 28, 2026
1 day ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
1 day ago
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
Politics
Iran is forcing the U.S. into an escalation trap as a 'shadow war' over the Strait of Hormuz heats up that could kill the tenuous ceasefire
By Jason MaJune 28, 2026
20 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.