GM Recall Scandal Is Actually Increasing Sales

By Patrick Coffee Comment


Here’s one we had to post quickly in the All News Is Good News category, because we’re still slightly shocked.

From a senior Edmunds analyst discussing GM’s current status in The New York Times this morning:

“You’d think it would damage their brand. But it’s actually helping to drive purchases at the dealership. You come in to have your old car fixed and see the new designs and technology, and wind up thinking ‘Maybe I’ll buy a new car.'”


“G.M. is also quietly offering additional discounts to owners of the 2.6 million vehicles recalled as part of the original ignition switch problem. The automaker has authorized dealers to offer employee prices to owners who inquire about a new purchase.”

It’s true that this is part of a larger trend as the auto industry finally recovers from the recession…but surely the latest wave of recalls and the generally negative response to CEO Mary Barra’s follow-up has led to a decline in GM’s stock prices, right?



Some wisdom on the subject from one Lisa Simpson: