GENERAL MOTOR IGNITION SWITCH RECALL A Lesson in Crisis Communication Danielle Hulen

TIMELINE 2001 – First Sign of Defective Switches 2007 – GM Notified of 10 Deadly Crashes 2/7/2014 – Recalls Begin at 800,000 Vehicles 3/12/2014 – Justice Department Launches Criminal Investigation 3/28/2014 – Recall Reaches 2.6 Million Vehicles 5/16/2014 – GM Settles Investigation, $35M Fine

WHAT HAPPENED? Flawed Communication: Crisis Blamed on Label: “Customer Convenience” Death Toll Reaches 13* Estimated Cost of Recall: $1.3 Billion 15 Employees Fired, 5 Disciplined

HOW WAS THE CRISIS HANDLED? CEO Mary Barra: Public Leader Public Apology Meeting With Families of Victims Hiring of Professionals Kenneth Feinberg, Jeff Eller, Anton Valukas Harnessing Multiple Forms of Media

COOMBS CONNECTION Best Practices for Crisis Communication Channels Website – Internal Communication – Company-wide Mass-Notification System – Social Media Reputation Repair Apology, Compensation, Reminder

CRISIS WEBSITE

IN CONCLUSION: Flawed Communication Can Be Costly Open Communication During Crisis is Key GM Looks to Learn from Crisis

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