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GM Offers Incentive To Assist Recalls : News

General Motors is offering bonuses and other incentives to dealers in an effort to speed up repairs on the millions of vehicles recalled for ignition-switch defects.

Ryndee S. Carney, a GM spokeswoman, told Edmunds that the program, called the Ignition Switch Recall Completion Initiative, was announced to U.S. dealers on June 13 and will run through July 7.

Carney said incentives include a $250 credit at an online gift shop for service and parts managers at dealerships that install at least 90 percent of the ignition-switch replacement parts sent to them by July 7; $4,000 in incentive credits to be split between parts and service managers at a random selection of 50 qualifying dealerships; and $10,000 to be shared by parts and service managers at one dealership selected at random.

Said Carney: "We are taking this action because we want to encourage dealers to continue to follow up with customers and do everything possible to get vehicles that are part of the ignition recall repaired as fast as possible."

GM has been criticized by owners, the U.S. Congress and the National Highway Traffic Safety Administration for delays in handling the recall of millions of vehicles for problems with ignition switches, which can turn off a vehicle's engine while it is being driven, disabling the airbags in the event of a crash. The automaker also released an internal report about the delayed recall that GM CEO Mary Barra described as "deeply troubling."

Some of the delay in fixing the cars resulted from the ignition components having been out of production with suppliers for quite some time, with the result that dealers were repeatedly running out of the parts needed to effect repairs.

"Given that the ignition switch was in very limited production for several years, GM's supplier, Delphi, increased production, pulled machinery out of storage, and found new suppliers for some of the part components," wrote Jeff Boyer, vice president of GM Global Safety, on GM's FastLane in mid-May. "Parts production is running seven days a week in multi-shift operations. We are buying new machinery and equipment to make parts quickly."

In addition to stepping up production of repair kits and offering incentives to dealers to get them installed more quickly, GM is also planning to send e-mails to owners who have not yet begun the process of scheduling repairs for their recalled vehicles.

As previously reported by Edmunds, GM began sending letters to owners of affected vehicles earlier this year and has continued doing so as additional vehicles have been added to the recall list.

As of June 19, GM says 236,437 of the recalled vehicles have been repaired.

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Sources : Ignition Switch Photo | Ignition Switch Article


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