How Product Recalls Can Create A Crisis For Companies

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There have been several headline-making product recalls in the past few days along, including Peloton, which recalled 2.2 million exercise bikes

that NHTSB’s recall request is too broad and based on hypothetical scenarios rather than any objective technical or engineering conclusion,” according to the newspaper.

Rather than wait for ARC Automotive to comply, GM, which has installed the airbags in one million vehicles, said it decidedthem “out of an abundance of caution and with the safety of our customers as our highest priority.” GM said it would offer “courtesy transportation” on a case-by-case basis to owners who fear driving vehicles that are part of the recall.OAK PARK, ILLINOIS - MAY 11: A sign hangs above a Peloton store in a shopping mall on May 11, 2023in Oak Park, Illinois.

“Every crisis management plan should have a procedure for a product recall,” Baruch Labunski, CEO of Rank Secure, said via email. “This should include logistical details or how to pull the product from stores and warehouses, but it should also include the public relations and reporting components. Consumers need a way of reporting a problem with a product, and the marketing and public relations team need to be able to disseminate information and mitigation pieces quickly when a recall happens,” he advised.

That is, of course, if the organization reacts quickly to the situation and in a strategic, effective, and efficient manner.

 

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