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Expert: GM Plants In Indiana Should Re-Think Product Launch

By Kat Carlton

Posted June 25, 2014

An Indiana business expert says local General Motors facilities may be re-thinking how they prepare for product launches.

This comes after 2.6 million of their cars were recalled because of faulty ignition switches.

Dan Carroll is the co-director of The Supply Chain Academy at the Indiana University Kelley School of Business. He says GM will most likely attribute the recalls to a systemic problem, rather than blaming an individual engineer.

"I believe that GM will take a hard look on how it does both product design and how it prepares for launch. So I believe that they will-I'm not a member of GM, I don't represent GM- but I do believe they're going to take the opportunity to review their processes to see if they can have a more effective product launch process and avoid these recalls in the future," Carroll says.

According to Carroll, pressure to innovate and compete with other companies can cause a group to push a product to market before it's ready.

"For instance, in their truck business, they're in very close competition with Ford on light trucks- and if Ford comes out with a new truck model, it's going to put pressure on GM to come out with a model," he says.

There are several large GM facilities in the state, including one in Kokomo. But Kokomo Mayor Greg Goodnight says he has been in talks with GM officials and doesn't see any direct negative impacts of the recall on his city.

"As long as they don't call me, I sleep okay, on that, at least with that part," says Goodnight.

So far this month, GM recalled almost 4 million cars to repair and replace ignition switches.

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