WASHINGTON (WKZO) -- Some business analysts are predicting that the recent General Motors recalls won't affect the company's bottom line in the long run. CBS financial analyst Jill Schlesinger says that history would seem to indicate embarrassing recalls don't really change the public's perception of a brand for good. She points to the Toyota recall of a few years ago, noting it was even bigger than the current GM recall. Schlesinger says Toyota came out of that just fine.
"Toyota's done just fine in the aftermath," Schlesinger told WKZO. "I think it could be a hit for GM, certainly a PR hit, but from a business perspective...chances are, a little time passes, and most conumsers will go back and say, 'Well, let me just go shop and shop as I was shopping.'"
General Motors CEO Mary Barra was grilled by Congress again on Wednesday about why the company didn't order a recall sooner on the more than one point six million vehicles with faulty ignition switches. The problem has caused an estimated 13 deaths.