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GM Situation Just Latest in Long List of Corporate Failures

Today’s consumer has come to the sobering realization that many of the country’s largest and most respected manufacturers repeatedly produce products which are dangerous and even deadly.  This realization has come as a result of revelations regarding everything from medications to household products.  And with recent disclosures relating to General Motors’ failure to protect the consumer from defects in millions of automobiles it manufactured, many consumers are left wondering who they can trust.

General Motors knew about at least two significant defects in the automobiles the company manufactured as far back as 2004, but failed to recall the vehicles or notify the public of the dangers for nearly a decade.  One of the defects, which affected the ignition systems of over 2.3 million cars, caused the automobiles to spontaneously lose power while in operation.  The other defect caused automobiles to spontaneously lose power steering capabilities.  All told, at least 12 people lost their lives as a result of the defects.

It is now well known and well documented that General Motors received ample evidence of the problems, and simply failed to act.  For example, a 2011 NHTSA report indicated that approximately 4,800 complaints had been filed about the power steering issue, and over 30,000 warranty claims had been submitted.  Despite the government’s investigation into the problem, even it failed to require General Motors to recall defective vehicles.

Now General Motors faces yet another lengthy period of attempting to regain its customers’ trust.  In the meantime, the company will be working its way through the costs of two major recalls, numerous lawsuits relating to deaths and injuries stemming from the defects, and likely a large sanction by the government.