General Motors Company (GM) and Ford Motor Company (F) Might Have Got Pandora’s Box in Their Models

General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) had a massive recall recently, which compromised the companies’ reputation and lowered prices. Now there’s enough bad news to make people forget about those mischiefs and focus on a larger issue. Kelley Blue Book Senior Director of Insights Karl Braue discussed on Bloomberg the huge recall to be made by Takata Corporation.


The latter company produces airbags for most of the major car manufacturers across the globe, Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) are among its clients. Luckily, they aren’t among the most faithful ones, counting tens of thousands of vehicles having this particular airbag installed. Why is this luckily?

“The tricky thing is that they’ve [airbags] been going off and throwing metal and plastic shrapnel at people, and there’s been deaths tied to this,” said Karl Braue.

It’s like a car with a grenade in it going to explode at your weakest moment, with little chances of avoiding the accident. Hopefully, only a few airbags have this dreadful property and most of the recalls will be performed just as precautions.

There are no concrete numbers to give a general overview of the gravity the current problem might reach, but it’s an issue confirmed by the National Highway Traffic Safety Administration and BMW, Honda Motor Co Ltd (ADR) (NYSE:HMC), Mazda and many others have already began recalling models with the problematic part, they’re are about 11 in total.

“The scary thing is there are millions of cars out there with Takata airbags, so which ones have this problem? They don’t know, nobody knows yet,” further added Mr. Braue.

General Motors Company (NYSE:GM) and Ford Motor Company (NYSE:F) will go insanely nervous if this issue will not be soon solved because any small accident could open Takata’s air-box with potential tragic outcomes. The fact that there’s also little information as to which cars have this defect under their hood brings a lot of pressure on the manufacturers.

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