General Motors Company (NYSE:GM) is concerned that a significant number of owners of recalled vehicles have not taken action to visit their dealers to replace or repair defective components.
“There are several hundred thousand people who have taken no action whatsoever. They haven’t seen their dealers, even though they have been contacted by us repeatedly,” said Ryndee Carney, manager of cross brand communications at General Motors Company (NYSE:GM).
General Motors Company (NYSE:GM) decided to offer $25 gift cards to encourage owners to bring their recalled vehicles to dealers for inspection, repair or replace defective components.
GM sent thousands of letters to vehicle owners
The automaker already started sending letters last week to thousands of vehicle owners who already received notices, but haven’t brought their cars to dealers for inspection.
General Motors Company (NYSE:GM) indicated in its letter to vehicle owners that they are qualified to receive a $25 gift card if they would bring their cars for repair by December 1.
The automaker is offering gift cards from Starbucks Corporation (NASDAQ:SBUX), Amazon.com. Inc (NASDAQ:AMZN), Wal-Mart Stores, Inc. (NYSE:WMT), Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) among others.
According to Carney, the vehicle owners will receive their gift cards within two to four weeks through U.S. mail after contacting General Motors Company (NYSE:GM) with a corresponding code.
The automaker estimated that approximately 2.4 million vehicles have been recalled and are still running with potentially defective switches. General Motors Company (NYSE:GM) already replaced the ignition switches of more than 1.3 million recalled cars.
General Motors Company (NYSE:GM) announced 44 recalls involving approximately 20 million vehicles worldwide. In the United States, the company faced federal investigations related to the delayed recall of vehicles with defective ignition switches that caused 13 fatalities.
GM reports best October sales in the United States
The General Motors Company (NYSE:GM) continues to achieve good vehicle sales performance despite its recall problems. The automaker reported that its sales performance for October in the United States was the best since 2007.
The automaker sold 226,819 vehicles in the United States last month due to the strong sales of its Silverado, Cruze, Traverse, Equinox and Buick brands.
Kurt McNeil, vice president of U.S. sales operations at General Motors Company (NYSE:GM) said, “The U.S. economy has steadily improved all year and now we are poised for a stronger expansion backed by improved job market, higher consumer confidence and lower fuel price.”