General Motors has provided a variety of video recordings, which include the press conference by Harry Pearce where retractions from NBC and acceptances from GM were made. Additionally, there are two videotapes featuring interviews conducted by Michelle Gillen. One interview is with a GM engineer, while the other is with an attorney representing GM in the Moseley case.
If you require further information or have any inquiries, please contact Mr. Ed Lechtzin, Director of Legal and Safety Issues at GM Communications Staff. You can find their office at New Center One Building–7305, 3031 West Grand Boulevard, Detroit MI, 48202.
Furthermore, on November 30, 1993, the McNeil-Lehrer Report aired a segment about the GM pickup trucks.
The safety issue revolves around three main factors: 1) the controversy over pickup truck safety, 2) the influence of the Dateline program, and 3) public perception. In essence, safety is at the core of all these matters.
The case and subsequent disclosures show that NBC fabricated the explosion and fire, as indicated in the Dateline segment. This false presentation made GM’s management furious and they concluded that this was indeed the case. While some media advisors suggest ignoring the issue to make it disappear from the public’s attention, GM should confront it directly. Furthermore, with the recent court judgment against GM, politicians and regulators may take more action regarding this issue. It is improbable for it to go unnoticed, and activists are determined to ensure that it doesn’t. The Center for Auto Safety has even planned a news conference in a few days.
A significant choice faced by GM was whether to handle this matter privately or make it public. Despite the potential risks, GM opted to disclose its information to the public. GM also considered the option of filing a defamation lawsuit against NBC News, which it ultimately pursued. GM had a strong chance of winning the case as it was evident that NBC had fabricated the fire, provided false coverage of the events, and was aware of its misconduct.
According to NHTSA accident data, driving a GM pickup with exterior mounted gasoline tanks for a year has a one in 6,605 chance of dying in an accident. In comparison, the odds of dying in a Ford heavy pickup are 1 in 6,916, and for a Dodge, the odds are 1 in 8,606. For a Nissan light pickup, the odds are 1 in 4,521. It is worth noting that heavy pickup trucks were significantly safer than passenger cars.1
One issue that was raised regarding the NHTSA accident records was the lack of control for vehicle usage, which could impact the frequency of accidents. A more informative approach would be to analyze the level of passenger protection in accidents. According to data from a study on fatal and major injury accidents, GM C/K pickups had a lower rate of fatal and major injuries per 1000 collisions compared to Ford F-Series and Dodge D/W Series pickups. The frequencies were: GM 33.82, Ford 34.30, Dodge 35.21. For side impact collisions, the frequencies of fatal or major injury were: GM 23.03, Ford 23.59, and Dodge 25.53. Nonetheless, no statistical test could demonstrate that GM pickups were less safe than Ford or Dodge pickups. The referenced Newsweek article titled “Just as Safe at Any Speed.”
Despite the data, safety activists believed that the GM pickups should be recalled. They believed that if there is a hazard, it should be removed. NHTSA requested GM to recall the C/K pickups voluntarily, but GM refused. Secretary of Transportation Pena then ordered a mandatory recall of the GM C/K pickups. GM challenged this action and filed a lawsuit. However, the Secretary changed their stance quickly, and GM and the Department of Transportation came to an agreement to resolve the issue without a recall. Observers considered the terms of the agreement to be favorable to GM.
The assignment questions will account for 30% of your final grade.
The case involves identifying and explaining the 4I’s. Additionally, it discusses the roles of news media in the business environment. Ultimately, the question is raised about whether GM should file a defamation lawsuit or pursue alternative actions.
