When Mary Barra took the wheel at General Motors in January she inherited a company in good shape. Five years after bankruptcy(ÆƲú), its profits were beyond expectations and its share price was rising. But the new boss's to-do list was long: fixing GM's loss-making European arm, keeping up momentum(ÊÆÍ·) in China amid signs of a slowdown and giving new life to the product line. The former CEO, Dan Akerson, warned her that she would also face unexpected challenges. The first has arrived sooner than she might have expected.
What appeared to be a routine recall(ÕÙ»Ø) of about 800,000 older models, linked to a faulty ignition(µã»ð) switch, has turned out to be anything but. The number of cars recalled has leapt to more than 2.6 million. The company's clumsy handling of a safety problem that first became apparent a decade ago is now linked to the deaths of at least 13 motorists.
Called before Congress to answer for GM's failings Ms Barra said she was ¡°deeply sorry¡± but insisted that the post-bankruptcy ¡°new GM¡± was not like the ¡°old GM¡±, which had failed to deal with the ignition switches for years. Politicians and the public alike want to know how such a problem could have remained unaddressed for so long.
Cars are becoming ever more complex machines, with thousands of mechanical and electronic parts. Last year it happened to 22 million vehicles in America, compared with 18 million in 2012. In fact, GM was one of only three brands that recalled fewer vehicles than it sold. Minor problems, like squeaks(Ö¨Ö¨Ïì) or rattles(¿¨àªÏì), that do not affect safety are more common still. They may be fixed at a routine service; the owner may never know. The growing number of recalls is proof to an improving system for picking up faults.
But it is very complicated. Dealers must record replacements of parts under warranty(±£ÐÞ). The carmaker needs to spot the trend, recognize it as a problem and then determine whether or not it is a design fault that requires an extensive replacement. It relies on accurate recording of every warranty replacement in every region. This system appears to have broken down at ¡°old GM¡±. Ms Barra needs to find out why.
The core problem is a widely used ignition switch that has a tendency to slip from the ¡°on¡± position to ¡°off¡± if a driver uses a heavy key-chain or bounces down a rough road. An improvement was made in 2008 to prevent the problem, which can lead to the engine shutting off, disabling the airbags. But despite a growing list of crashes and deaths, GM failed to order a recall for a component that would have cost a few dollars at most.
This is odd. Most carmakers want to identify and fix problems speedily despite having to bear the cost of buying and fitting a new component. A small part can do great harm, if bad publicity leads to reputational collapse, lost sales and law suits, including heavy penalties. Appearing to put profits before safety is an invitation to
battering a firm's shares, as GM has discovered.
So far Ms Barra has handled the situation well. She seems to have acted as soon as she found out something was wrong. GM has appointed a worldwide safety president to cut through the process that may have delayed investigation and action. And in a sweeping housecleaning, GM has recalled another 2 million vehicles in America alone. GM looks set to accept moral, if not legal, responsibility. The terms of its exit from bankruptcy give immunity to lawsuits for injuries arising beforehand. But GM is likely to compensate survivors¡¯ and victims' families anyway.
It is not yet clear how much of a hammering GM will take. But hours before Ms Barra's meeting with Congress, the Insurance Institute for Highway Safety issued a greatly desired ¡°Top Safety Pick¡± for the new Chevrolet Malibu, one of a growing number of well-received cars from GM.
СÌâ1:When Mary Barra took office, there was plenty more room for GM's improvement in that ________.
a. the development of Chinese market appears to be slowing down
b. former bosses have failed to fix GM's loss-making European arm
c. some car models lack appeal in the market
d. Mr. Akerson has left some challenges for her to handle
e. GM¡¯s management teams are made up mainly of men
| A£® a, b, and e | B£® b, c, and d | C£® a, b, and c | D£®a, c and d |
СÌâ2:What can be inferred from Paragraph 4?
| A£®Problems like squeaks or rattles are frequent reasons for recalls. |
| B£®Recalls are not uncommon in the auto industry. |
| C£®Car companies welcome recalls to demonstrate improved products and services. |
| D£®Minor problems may be fixed at a routine service without the owners¡¯ knowledge. |
СÌâ3:Mary Barra has carried out the following strategies to manage the crisis and quiet the critics EXCEPT that ________.
| A£®as soon as she learned about the problem, she acted without hesitation |
| B£®she faced facts and apologized sincerely |
| C£®she took the legal responsibilities for their previous mistakes |
| D£®she appointed a new president for global safety for GM |
СÌâ4:What does the underlined word ¡°battering¡± in paragraph7 probably mean?
| A£®Benefiting. | B£®Regulating. | C£®Purchasing. | D£®Damaging. |
СÌâ5:What can we infer from GM's new Malibu being awarded ¡°Top Safety Pick¡±?
| A£®GM's new model Malibu is specially designed to solve ignition problems. |
| B£®GM products are gaining more and more popularity around the world. |
| C£®GM seems to be on the road to saving itself from mistakes. |
| D£®GM has worked out a solution to the broken-down recall system. |
