Posted by & filed under Environment, Ethics, Operations Management, Video Report.

 

Description: The National Highway Traffic Safety Administration in the U.S. recalled 34 million cars – the largest in the U.S. history; in other words, one is every seven cars in the U.S. is being recalled. The reason for the recall is defective airbags made by Takata – a Japanese company. This recall involves 11 different auto manufacturers.

Source: CBC
Date: May 19, 2015
Video Link: http://www.cbc.ca/player/News/Business/ID/2667495111/

Questions for Discussion:

1. How should companies carry out such a big recall?
2. Should there be financial and legal ramifications for manufacturers for not catching the defect earlier?
3. Do recall have any long term effects on the image and the performance of the manufacturer?

 

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