Barry University GM Ignition Switch Position Business Paper


Business Finance

Barry University

Question Description

Each position paper must be written in executive memo format and should be limited to TWO (2) SINGLE-SPACED PAGES. The memo should focus on recommending a specific course of action to upper management. What should management have done and what should they do? Justify your recommendations. Note: in order to successfully complete this assignment, you must read the case about GM Ignition Switch.

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Explanation & Answer


Running head: MEMO


Student Name
Course Title



From: Student’s Name
Date: March 23, 2020
To: General Motors’ Executive Managers
Subject: Recommendations following the Ignition Switch Recall
Since the year 2014, General Motors initiated a series of recalls targeting some small
vehicles due to faulty ignition switches. From 800,000 vehicles recalled in 2014, the company
is reaching the stunning number of 14 million vehicles recalled and paid the record penalty of
$900 million to the United States (Shepherd & Vardiman, 2016). This situation was at the
origin of several tragedies for several families and the company. From a legal perspective,
around 120 deaths were linked to the faulty ignition switches scandal since its inception in
2005 (Shepherd & Vardiman, 2016). Moreover, this situation tarnished the image of the
company on a global scale and generated huge financial losses. The management of this
situation from the discovery of the faulty ignition switches to the public prosecutions was
chaotic and deserves to be reviewed and addressed. Another series of recommendations is
also essential for further actions considering that the company evolves in a highly competitive
The faulty nature of the ignition switches discussed in this case originates from a mere
mistake in the design of these cars. Intended to range from 10 to 20 Newton centimeters, the
ignition switches within the vehicles were less than 10 Newton centimeters (Wanasika &
Conner, 2018). It was only at this condition that the switches could properly work in highly
vibrating environments. The availability of this data within the public pieces of information
associated with this case reveals some precious facts. The most important fact is that the recall
of these v...

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