GM Proactive in Problems With Volts, Learning From Toyota’s Mistakes
GM (NYSE:GM) has been very proactive in communication regarding reported fires in crash-tested Volts. Analysts say that the company wants to prevent any reputation for trying to minimize a safety issue or not taking the reported fires seriously, a lesson they may have learned from Toyota’s (NYSE:TM) mistakes.
GM has already held news conferences by senior executives and engineers to speak about the fires as well as launched customer care initiatives. The company has offered free GM loaner cars to any Volt owners who are concerned about the issue until it can be further investigated.
Eric Noble, President of The CarLab, an industry consulting firm said, “This (the customer care initiative) is a smart move on GM’s part because the total exposure to GM (NYSE:GM) is infinitesimal if you think about the small number of Volts that are out there on the road,” per the LA Times. GM says “only a handful” of Volt owners have taken advantage of the offer.
The LA Times quoted Jeremy Anwyl, Chief Executive of auto information company Edmunds.com, who said, “Toyota was studying its problem and tried to determine what the problem was, but they kept studying and didn’t communicate. And what the automakers learned is that in today’s world that’s not always good. You have to communicate before you have all the facts.”
Here’s how GM and Toyota shares are trading:
General Motors Corporation (NYSE:GM): GM shares recently traded at $21.12, down $0.17, or 0.8%. They have traded in a 52-week range of $19.05 to $39.48. Volume today was 5,977,181 shares versus a 3-month average volume of 12,743,300 shares. The company’s trailing P/E is 4.62, while trailing earnings are $4.57 per share.
Toyota Motor Corp. (NYSE:TM): TM shares recently traded at $65.79, down $0.12, or 0.18%. They have traded in a 52-week range of $60.37 to $93.90. Volume today was 154,885 shares versus a 3-month average volume of 545,914 shares. The company’s trailing P/E is 40.07, while trailing earnings are $1.64 per share.