GM CEO Mary Barra Apologizes For Mechanical Failures - WLNS TV 6 Lansing - Jackson | Your Local News Leader

GM CEO Mary Barra Apologizes For Mechanical Failures

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(WLNS) - General Motors is a huge job creator here in Michigan, especially in Lansing.

6 News Joe Khalil spoke to an expert who says GM will have to work just as hard at repairing faulty parts as it will fixing its image with customers.

CEO Mary Barra apologized Tuesday as she testified before congress.

The nation's largest automaker has come under fire for mechanical failures that led to as many as 13 deaths.

Federal investigators say engineers at GM may have known about the problem for more than ten years.

MSU marketing professor Clay Voorhees specializes in automotive marketing and brand strategy.

He says this pr hit is unlike any GM has seen before. Voorhees says the recalls have cost the automaker $750 million, 20 percent of its total profits last year.

"You can't take a hit like that in the long term sales loss. which is inevitably going to happen without some suffering," said Voorhees.

Voorhees says that financial hurt won't likely trickle down to local GM facilities, like the Grand River plant in Lansing in the form of layoffs or cuts.

"We're probably insulated reasonably well just because it's the Cadillac product like, those are probably going to be the most buffered against any fallout."

Voorhees says that doesn't mean company wide GM won't take a hit.

But like most recalls, he expects the effects to be temporary.

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