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Insider – Industry Intelligence – GM’s MID-00’s Cars (Part 2)

10/29/2014 11:22:11 AM
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Recalls: an industry time-bomb waiting to blow? Scarred by its recalls scandal, GM warns globalisation could trigger an epidemic of remedial work!

Cars are undergoing a step-change in complexity with new tech such as alternative powertrains and self­-driving car systems, and consumers are in the front line. Car companies are exposed too, as they globalise their product development, and spin myriad models off common components. VW assembles about 4 million cars annually on its MQB (Golf) platform.

Car companies are exposed too, as they globalise their product development, and spin myriad models off common components.

Car companies are exposed too, as they globalise their product development, and spin myriad models off common components.

‘It’s about systems integration, and we need design release engineers who can get it right - that’s a rapidly growing part of our capability,’ says GM’s Ammann. ‘The recall and the regulatory environment is going to have to catch up pretty quickly with how [a complex] vehicle is engineered.’ How did the 2010 recall disaster change Toyota as a company? Unlike GM, the Japanese giant had a problem with contemporary, not historic, cars, having to briefly pull some off sale as it investigated unintended acceleration, then a brake problem with the Prius.

Toyota has appointed a chief quality officer for each region - in Europe it’s the region’s chief exec, Didier Leroy - symbolising the need to re-establish its reputation for bulletproof cars, and act fast and act locally. Insiders admit Toyota’s 2010 quality focus wasn’t as razor-sharp as it could have been, but vow that’s changed. ‘Now anything unusual that happens at the dealer, we log it on the global system. If there are a handful of instances, we go look at it,’ said a source. ‘If it’s in the UK on Auris or Avensis, we send someone from the plant, who can make a quicker and better decision.’ GM is now operating in a similar way, says Ammann.

Toyota has appointed a chief quality officer for each region - in Europe it’s the region’s chief exec, Didier Leroy - symbolising the need to re-establish its reputation for bulletproof cars, and act fast and act locally.

Toyota has appointed a chief quality officer for each region - in Europe it’s the region’s chief exec, Didier Leroy - symbolising the need to re-establish its reputation for bulletproof cars, and act fast and act locally.

Toyota says another significant change is that the UK agency responsible for issuing recalls the (rebranded) DVSA - is now geared up to act with real urgency too. UK car recalls get a 90% response rate, compared with 37% for other product recalls, claims the Society of Motor Manufacturers and Traders.

So, as manufacturers become more sensitive to recalls, is there an epidemic? Not yet. While Toyota’s annus horribilis was the second biggest for UK recalls and the third biggest for US recalls in the past 20 years, numbers have dropped back on both sides of the pond since 2010.

GM and Toyota’s recalls look exceptional, one caused by Detroit incompetence, the other exacerbated by political and media hype: ultimately, a NASA investigation exonerated Toyota of unintended acceleration. Logic says car makers could get trigger-happy with safety recalls as complexity and scale intensify, to minimise the potential cost, liability and brand damage.

But while every recall inconveniences owners, there is an upside: it’s another check on the most complicated consumer good money can buy.

Ignition switch ‘was so far below GM’s own spec it failed to keep the engine on... Personnel’s inability to address the problem for 11 years was a history of failures,’ states GM-commissioned report into the case

Ignition switch ‘was so far below GM’s own spec it failed to keep the engine on... Personnel’s inability to address the problem for 11 years was a history of failures,’ states GM-commissioned report into the case

 

 
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