L2 Founder and CEO Scott Galloway spoke on Bloomberg TV this week on GM CEO Mary Barra’s testimony before a House subcommittee. GM recalled 1.3 million vehicles in the U.S. that could have a defect causing sudden loss of electric power steering assist.
Galloway said GM should do what any company should do to manage a crisis: acknowledge the issue, have the top person address the issue, and overcorrect. GM has done all but the first, which is why it has created backlash.
Because of the 2009 bailout, GM is not legally liable for an manufacturing errors that occurred before then. Galloway the U.S. gives companies the ability to start over, which is why it is one of the most entrepreneur-friendly countries. See full video here.