General Motors (GM) is facing pressure to make airbags standard equipment for all of its models sold in Mexico, reports the Wall Street Journal. According to the report, four American consumer-advocacy groups have sent a letter to CEO Mary Barra requesting that the company make airbags standard globally.
Significance: The report notes that a GM spokesperson said the company is considering making the safety feature standard equipment for certain models or options packages; the new USD5-billion project for a vehicle designed to be cost competitive for emerging markets will have standard front and side airbags and is due for the 2019 model year in Mexico and India, among other markets. The safety features required by law in mature markets like the US, Japan, or the European Union are not standard, or in some cases available, in emerging markets. Brazil began requiring acrylonitrile-butadiene-styrene as standard equipment beginning in January 2015, which increased vehicle cost at a time when taxes also increased the cost of vehicle ownership, and sales were immediately affected. As emerging markets mature, an increased focus on safety equipment will be supportable in vehicle pricing.
