Cars and Drivers

GM Recalls Not Affecting Shoppers

2014-Chevrolet-Silverado
courtesy of General Motors
Just 5% of new car shoppers in a recent survey said that they would not consider buying a General Motors Co. (NYSE: GM) car as a result of the massive recalls on the company’s products that began in mid-February. However, 40% of car shoppers had heard about the GM recall.

The data was gathered by Kelley Blue Book (KBB), and among other nuggets, is this one: some 48% of survey respondents remembered the recall that hit Toyota Motor Corp. (NYSE: TM) in 2010. A KBB analyst said:

Shoppers are willing to forgive, but not forget. Most likely, GM is maintaining its shopping traffic on KBB.com from buyers who are looking to capitalize on any deals that may be offered or because none of the current recalled vehicles are a part of manufacturer’s current product portfolio.

That might be giving consumers too much credit. It seems very unlikely that shoppers would remember which models were affected by the recalls and even less likely that they would know that none of those models is currently in production. For example, only 3% of those surveyed knew that a Saturn model was included in the GM recalls.

But looking for a bargain, that seems ultimately reasonable. According to KBB, Chevrolet’s traffic in February was up 25% year-over-year on the kbb.com website. KBB attributes the rising traffic to recent launches of new Chevy high-profile models like Corvette and Silverado. It helps that none of the spiffy new models is a Chevy Cobalt or a Pontiac.

GM’s shares are up about 1.1% in mid-afternoon trading on Wednesday at $34.34 in a 52-week range of $30.11 to $41.85.

 ALSO READ: States with the Most Drunk Driving

Get Ready To Retire (Sponsored)

Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.

Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.

Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future

Get started right here.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.