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.


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