U.S. consumers are still buying new cars, despite recalls affecting millions of vehicles. KTRH Car Pro Jerry Reynolds says the car maker with the biggest problems is still doing just fine.
“At the height of the GM ignition recall,” Reynolds says, “which was last month, they had a record May, at least since 2007, and their sales were way up.”
Reynolds says many of the big car companies are overly cautious right now. They are worried about federal fines in the 10s of millions of dollars or extremely expensive litigation.
He says the car companies are squeezing the parts makers so tightly, there can’t always make those parts properly.
“That's going to continue to be a problem as we go forward because so many of these cars share parts,” he says, “made by the same suppliers.”