NEW YORK (TheStreet) -- Concerns stemming from Takata's (TKTDF) airbag inflation problems is affecting several automakers, including Ford (F) , Toyota (TM) and General Motors (GM) , among others. Mark Ruess, GM's global head of product development, told TheStreet TV that it's an issue the company is working to resolve.
However, since the root cause of the problem is still unknown, it's hard to come up with a solution, he explained. It's important to make sure there aren't related issues that could potentially endanger drivers.
General Motors doesn't have too many of its vehicles affected by the recall, Ruess told TheStreet's Ruben Ramirez at the Los Angeles Auto Show.
Ruess also said that lower gasoline prices are "great," but not an aspect on which the company bases its planning.
Predicting gas prices is difficult, especially for an entire year. Instead, the company uses the rationale that gas prices tend to rise over the long term. Plus, increased fuel economy regulations are pushing automakers to boost vehicle efficiency.
Truck drivers certainly have to enjoy the lower gas prices. The company's two smaller trucks, the Chevrolet Colorado and the GMC Canyon, receive 27 and 28 miles per gallon on the highway. The trucks have a very low turn rate of roughly 9 days, Ruess said.
As for the for challenges that lie ahead, Ruess says customer safety remains at the forefront. General Motors is trying to lead that charge after the ignition switch recall announcement in February caused a company-wide change in culture.
And while physical safety is very important, automakers need to consider cyber security as well. With car systems becoming so complex and relying on connectivity, drivers need to be safe all around, he concluded.
- Written by Bret Kenwell
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: GM Ratings Report