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GENERAL MOTOR IGNITION SWITCH RECALL A Lesson in Crisis Communication Danielle Hulen.

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Presentation on theme: "GENERAL MOTOR IGNITION SWITCH RECALL A Lesson in Crisis Communication Danielle Hulen."— Presentation transcript:

1 GENERAL MOTOR IGNITION SWITCH RECALL A Lesson in Crisis Communication Danielle Hulen

2 TIMELINE 2001 – First Sign of Defective Switches 2007 – GM Notified of 10 Deadly Crashes 2/7/2014 – Recalls Begin at 800,000 Vehicles 3/12/2014 – Justice Department Launches Criminal Investigation 3/28/2014 – Recall Reaches 2.6 Million Vehicles 5/16/2014 – GM Settles Investigation, $35M Fine

3 WHAT HAPPENED? Flawed Communication: Crisis Blamed on Label: “Customer Convenience” Death Toll Reaches 13* Estimated Cost of Recall: $1.3 Billion 15 Employees Fired, 5 Disciplined

4 HOW WAS THE CRISIS HANDLED? CEO Mary Barra: Public Leader Public Apology Meeting With Families of Victims Hiring of Professionals Kenneth Feinberg, Jeff Eller, Anton Valukas Harnessing Multiple Forms of Media

5 COOMBS CONNECTION Best Practices for Crisis Communication Channels Website – www.gmignitionupdate.comwww.gmignitionupdate.com Internal Communication – Company-wide Email Mass-Notification System – Social Media Reputation Repair Apology, Compensation, Reminder

6 CRISIS WEBSITE

7 IN CONCLUSION: Flawed Communication Can Be Costly Open Communication During Crisis is Key GM Looks to Learn from Crisis

8 WORKS CITED www.gmignitionupdate.com (2014, June 10) Crisis Communication 2.0: Mary Barra Strong In Adversity. Forbes Magazine. Retrieved from: http://www.forbes.com/sites/85broads/2014/06/10/crisis-communication-2-0-mary-barra-strong-in-adversity/ http://www.forbes.com/sites/85broads/2014/06/10/crisis-communication-2-0-mary-barra-strong-in-adversity/ Feeney, Nolan. (2014, June 3). Time Magazine. Retrieved from: http://time.com/2819690/gm-recall-deaths-ignition- switch/http://time.com/2819690/gm-recall-deaths-ignition- switch/ Gallo, Carmine. (2014, June 9). Forbes Magazine. Retrieved from: http://www.forbes.com/sites/carminegallo/2014/06/09/two-misleading-words-triggered-gms-catastrophic- communication-breakdown/ Gallo, Carmine. (2014, June 9). Forbes Magazine. Retrieved from: http://www.forbes.com/sites/carminegallo/2014/06/09/two-misleading-words-triggered-gms-catastrophic- communication-breakdown/ Maynard, Micheline. (2014, April 11) The Smoking Gun Memo in the GM Recall Crisis. Forbes Magazine. Retrieved from: http://www.forbes.com/sites/michelinemaynard/2014/04/11/the-smoking-gun-memo-in-the-gm-recall-crisis/ Maynard, Micheline. (2014, April 11) The Smoking Gun Memo in the GM Recall Crisis. Forbes Magazine. Retrieved from: http://www.forbes.com/sites/michelinemaynard/2014/04/11/the-smoking-gun-memo-in-the-gm-recall-crisis/ Muller, Joann.(2014, May 29). Exclusive Q&A: GM CEO Mary Barra On Crisis Management, Culture Change And The Future of GM. Forbes Magazine. Retrieved from: http://www.forbes.com/sites/joannmuller/2014/05/29/exclusive-qa-gm- ceo-mary-barra-on-crisis-management-culture-change-and-the-future-of-gm/?partner=yahootixhttp://www.forbes.com/sites/joannmuller/2014/05/29/exclusive-qa-gm- ceo-mary-barra-on-crisis-management-culture-change-and-the-future-of-gm/?partner=yahootix Pridle, Alisa. (2014, April 3) GM hires Clinton-era crisis communications expert amid ignition switch recall. Detroit Free Press. Retrieved from: http://archive.freep.com/article/20140403/BUSINESS0101/304030098/GM-recall-General-Motors-Mary- Barra-Jeff-Eller-auto-crisis Pridle, Alisa. (2014, April 3) http://archive.freep.com/article/20140403/BUSINESS0101/304030098/GM-recall-General-Motors-Mary- Barra-Jeff-Eller-auto-crisis Valdes-Dapena, Peter, Tal Yellin.GM: Steps to a recall nightmare. CNN Money. Retrieved from: http://money.cnn.com/infographic/pf/autos/gm-recall-timeline/ Valdes-Dapena, Peter, Tal Yellin.GM: Steps to a recall nightmare. CNN Money. Retrieved from: http://money.cnn.com/infographic/pf/autos/gm-recall-timeline/


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