Sergio Marchionne, the CEO of Fiat Chrysler Automobiles, has admitted concern that the American auto industry will overreact to the probe faced by General Motors over its mishandling of a 2.6 million-car recall.
“On recall issues, you’re going to see a heightened level of sensitivity. You may see excessive corrective actions,” Marchionne said at Chrysler headquarters in Auburn Hills.
The Detroit News reports that Marchionne feels that costs could rise for the industry, although it is “too early” to say if Chrysler will need to increase its reserves to account for the cost of recalls. “Today there is a feeling of angst and a feeling of concern inside the house about what’s going on. I understand it. We just have to manage our way through.”
Marchionne also articulated that engineers are worried as well, as members of Congress have called a gone through five years’ worth of emails in their investigation and even called a General Motors engineer a liar. “There’s an incredible level of concern … especially with engineers who are involved with this process because the downside risk in not promptly” responding to an issue “is relatively large.”
“I think what we’re going to see is that a lot of issues will be taken up to these vehicles recall committees — some of which have nothing to do with safety — but they’ll do it just to make sure they aren’t the ones that are held responsible for making that call. I can’t intervene. I’ve got to allow the machine to adjust itself. It’s going to take some time until this balance is found,” Marchionne said.
Comments
Let me translate. This issue while not good was blown way our of proportion.
This is like Pandora’s box as while things on GM’s part should have been handled better the useless need for the politicians and the media to over hype this to a level even greater than it needed to be is a problem for the entire industry.
Simply said this is not the first time a MFG has faced this and it will not be the last.
Chrysler has already faced this several times with the over hype on their Mini Van latches, Jeep roll overs and other issues they have faces.
If people in this country try to vilify all Engineers they may scare away people from the profession and put our country at more risk.
In any industry you have people and MFG that have issues but you can not condemn entire companies and all engineers based on a mistake or poor judgment of a few.
If there is an industry to pull into question it is the media and they over hyping of different situations. Just look at the way they are over hyping the Global warming at a time the government wants to approach Cap and trade Again.
It is just so sad the American public is so ignorant on many of these topics the media can just say what they will to cover or convince these people into what ever they want.
Don’t think Monica Lewinsky’s coming clean is just by chance at the same time Hillary is just starting a press drive for her new book that will launch her campaign. These things just do not happen by chance.
Fiat got a specific exemption from any pre-bankruptcy claims including known issues and recalls as part of the deal to buy Chrysler. GM did not get that shield.
The issue is being over hyped but someof the calls on question are dangerous.
GM needs to take full responsibility for old GM, or the brand will become even more damaged.
I live on the coasts, NYC to be specific, and in this region Chevy already it’s considered a weak brand with GMC products being far more popular.
Mary Barra must stop the bleeding.
If you note all the things Mary has done she has been hard at work on this.
GM right now taking care of the people who really need taken care of. The present cars are being repaired and the company is working with any family or person who was legitimately or killed even some not legitimately.
GM Is using old GM to fight the petty suits that have no place being placed on them. Ones like resale value on a 14 yea old car and other petty suits where people and lawyers are fishing for any settlement just to go away. Come on you know well that 75% or more of the filings are petty!
Also sales as a whole have not been effected.
So this is going to be the way that it had been looking for.