General Motors may be suffering from a tarnished image after a slew of recalls, including one for faulty ignition switches that resulted in 13 deaths, but the setbacks haven't seemed to hurt GM sales or the resale value of GM cars, NBC News reported.
The American automaker has recalled around 14 million vehicles in the U.S., a figure that made GM history and also boosted total industry recalls in the country to the highest number in a decade.
GM hasn't been the only carmaker hauling models back into dealerships for repairs. Toyota comes in second when it comes to recalled cars, while the industry as a whole has recalled 22.4 million cars in the U.S. so far this year.
According to a new ALG report, GM will see few long-term effects despite the devastating 2.6 million-vehicle recall that resulted in dozens of crashes and a federal investigation, the carmaker ultimately paying a record $35 million fine.
"Similar to Toyota's widespread 'unintended acceleration' recall from 2009, GM has seen short-term impacts to its resale values," Eric Lyman, ALG vice president of editorial, said in a statement. "It's unlikely there will be any long-term effects, however, and ALG has no reason to forecast lower values than previously projected."
The report compared GM's recent troubles to Toyota's 2009 scandal. The Japanese automaker paid billions in legal fees and had to shell out $1.2 billion for a fine earlier this year, something GM will likely mirror as it deals with various lawsuits connected with the ignition switch debacle.
But while carmakers like Toyota have seen their value drop across the board shortly after recalls, vehicle resale value is unlikely to be affected long-term, the report said.
"In fact, the data ALG has recorded since 1964 has proven that few ripples in the market have substantial long-term sales implications," ALG's Lyman said in a statement. "We expect GM's values to mimic what happened to Ford and Toyota after their mass recalls, with the affected vehicles hurting little more than GM's reputation for several years."
Additionally, the problem of "consumer fatigue" serves to help people disregard problems with a brand since recalls are issued for products every day to make headlines and then be forgotten, NBC News reported.
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