What's In the News?

In report to the CBC article of Ram Pickup Trucks

The automobile industry is one of the biggest industries in Canada. Automobiles cost a significant amount to purchase, and customers are required to make bi-weekly payments, or choosing to lease the automobile. When making such a significant purchase, a customer has an expectation of the product having promising quality. It is becoming common to hear in the news of an automobile brand having a recall on their products, as the most recent of Dodge having to inform its customers of a recall on many models.

In October 2016, Transport Canada officially announced a recall notice on 10,000 Dodge product including; Ram pickup Trucks, and other Fiat Chrysler vehicles. These automobiles are reported of having an increased risk of the engine stalling or inflaming due to an electrical shortage. Although, the problem can easily be resolved by replacing the alternator the recall includes Ram pickup trucks from 2007 through 2013. Law Enforcements in Canada have used the Dodge Charger as Police Car models, and these too are included in the recall. The recall does not only effect the Canadian market, about 75 000 automobiles have been recalled in U.S.A, and Mexico.

Dodge has suffered a devastating blow towards its brand reputation. Having a recall on its products can change customers’ attitude of the brand. Promising customers a product, which is to be one of the markets leading trucks, is disappointing to hear of malfunctions causing a recall. Tarnishing product reputation can lose loyal customers, and affect future customers. This is not the first time of a recall being announce of automobiles catching fire, this being more tarnishing to the brand. The company changed engine suppliers in 2012, and was when the first recall was issued. To improve the product, other than adding cool features that attracts a target market, the company could change suppliers of the current materials, and find a supplier promising better quality of materials. Although a repositioning strategy could take years to implement and change customers’ perceptions, it might be best as people want quality and want to ensure their product will not inflame when driving.

Dodge will have to reduce the price of its product to encourage, people to take the risk of purchasing their brand. Although the risk is not purchasing the brand, but quality of the brand products, having a truck that does not meet product expectations can not be charged for a significant high price. Lowering the prices of the product can encourage consumers to purchase the product, without a major risk of investing too much money into a product. Dodge should be encouraging these promotions in attempt to retain and attract more customers.

http://www.cbc.ca/news/business/ram-pickup-recall-1.3811202