General Motors Recall Process: Issues, Findings, and Recommendations

This report provides a comprehensive analysis of the General Motors (GM) recall process, examining its impact on the company and its stakeholders. The report delves into the issues surrounding the recall, including the near-term effects such as financial losses and damage to the company's image, as well as long-term consequences like consumer distrust and operational challenges. It discusses the findings related to the defect detection and the company's response, including the development of spare parts, staff changes, and repair efforts. The report highlights the importance of improving operations and supply chain management, including better communication, the development of a recall process plan, and the integration of information technology. A five-year timeline for implementing these improvements is also proposed, outlining key steps from the development of a recall plan to the initiation of the actual recall process. The report concludes by emphasizing the critical role of an effective recall process in maintaining service excellence and mitigating negative impacts. This report, contributed by a student, is available on Desklib, a platform offering AI-based study tools and resources.

General Motors Recall
process
Student’s Name
STRRRInstitution

Introduction
Cars recall process has been an issue that has struck many
different car manufacturers and dealers worldwide.
Many companies that are majorly manufacturers and assembly
plants for cars has experienced a negative impact of recall and
this has also affected the operation management of numerous
companies within the value chain.
One of the companies that has been affected within the recent
past is the General Motors company that has recall many cars
globally totaling to more that 30 million.
This has tainted the image of the company within the motor
vehicle industries.
The following paper analyzes and provides the recommendation
for improving the recall process of the motor vehicle by the
General Motors Company (Fletcher, 2014).

Recall investigation
The purpose of the paper is to assist the safety operation
management department of the organization to improve the
recall process
The recall process that has been used by the company has
resulted into negative reaction from consumers that view cars
as unsafe
The company therefore need to improve the recall process and
adopt service operation management that will reduce this
negative impact on the consumers.
In addition, the General Motors being a key player in the
motor vehicle market need to increase the involvement and
compliance of various stakeholders to the recall process. This
assignment therefore, analyses the situation and the
recommends necessary improvement tips.

Issues related to recall
Near-term
The near term impact of the recall includes loss of funds,
loss of shareholders, and poor company image among
others.
Firstly, the company lost huge amount of money through
payment of 124 deaths and the amount totaling to $900
million.
Secondly, share of the company lost value within the first
four weeks of the recall totaling to over $3 billion.
Thirdly, the overall near term negative impact of the recall
was poor company image as many customers fear fatality
resulting from faulty company products (Hays & Krisher,
2015).

Recall process management
Launch of the recall
The process of the initiation and actual recall
process that was undertaken by the management
of the General Motors has been criticized by
many stakeholders within the system.
The current recall process resulted in negative
impact of the process among the public leading
to fall in share prices.
There are many issues that are related to the
recall process that resulted to the current
situation that is experienced by the company.

Issues related to recall
Long-term negative impact
Long-term negative impact resulted to numerous
challenges that some the company still experience and in
future.
Firstly, many cars were termed as unsafe for drive
regardless of some improvement that has been made by
the company.
Secondly, the company image has been tilted and many
people or customers view GM products as risky and
unsafe.
Thirdly, operation management of the company was
viewed as poor in terms recall process and communication
(Shenoy & Zabelle, 2016).

Discussion of findings
Findings from the General Motors indicate that defect in the
products that lead to recall was detected sometimes in the past
before the recall.
Current status of the recall process
The company has been trying to improve its products especially
production of spare parts that can help improve those cars that
were faulty.
Some of the steps that the company took include development
spare parts, repairs and retrenchment of staffs and
investigation of the service recall process.
Firstly, the company came up with many different spare parts
that can be used with those products that were faulty as this
could reduce recall process (Krajewski, Ritzman & Malhorta,
2013).

Discussion of findings
Secondly, many staffs mostly executive staffs were fired as a
way to improve recall process.
Thirdly, many recalled cars were subjected to repairs in bid
to improve those faulty cars and parts
Past service recall
The General Motors detected the defect in cars way back
before 2005 but relented in solving the faulty parts.
Though the company had met with its top management to
change the situation, many faulty products were still
released and sent to dealers.
The past recall process has been carried out with many
vehicle recall in bunches reaching 30 million within a short
period of time (Poluha, 2016).

Recommendations
In light of the recent and past recall process, there
are some recommended changes that can help
improve the recall process hence reduce the negative
impact that the recall has caused among the public in
general.
Firstly improving the operation of the management
especially the communication process that is used to
make public aware of the faulty products.
Secondly, development of the recall process plan is
an important aspect that need to be developed by the
company to reduce the negative impact of the recall
process (BMC, 2016).

Information Technology personnel and
resources
Firstly, information technologies personnel need
to be increase within the service operation in
order to increase application of technology in
recall process.
Secondly, the GM company need to increase its
technological resources such as information
infrastructure and system.
Thirdly, GM need to develop the smart recall
process platform that is fitted with technologies
with capability of detecting faulty product hence
initiate recall process before reaching end
consumer.
Lastly, faulty tracking system is another

Improving operations and supply chain
management operations
Firstly, there is need to improve the logistic and
compliance for improving the supply chain as this
has huge impact on the car recall process (Jacobs &
Chase, 2013).
Secondly, the company needs to develop an
investigation and research section that is connected
to customers directly to ensure that will ensure
faulty cars are properly located and approved.
Thirdly, compliance is another aspect of supply
chain that company need to adopt that can improve
the recall process.

The timeline for improving recall process
The timeline for improving the recall process
should take at least five years that will
commence from 2018.
There various steps that are undertaken to
improve the service excellence during the recall
process (Spacey, 2018).
2018: Development of Recall Plan
Development and implantation of the recall
process plan that include the recall system and
necessary communication procedure during
recall process.