Will the Free Market Punish GM?

Recently, A major car company General Motors was found to have known about, and ignored a deadly flaw in many of their vehicles for over a decade. GM was recently bailed out by the tax payers, who then lost over $10 Billion on the deal, http://www.usatoday.com/story/money/cars/2013/12/09/government-treasury-gm-general-motors-tarp-bailout-exit-sale/3925515/.

The new CEO of GM testifying before Congress seemed shocked and appalled to discover that flaw had been allowed to continue over budget concerns, even after 13 deaths had been attributed to this flaw. The proper part cost less than a dollar, yet they continued to use the flawed part until a few years ago. It will be interesting to see if the Public punishes GM where it really hurts, by not buying it’s vehicles.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s