TTAC‘s Charles Dagastino says the 231 V-6 engine, introduced in some of the General’s most popular 1978 models, was the turning point:
…It quietly appeared on the scene then gained wide spread use in 1978. That year saw a major redux across the A-body line: Oldsmobile Cutlass, Pontiac Grand Prix and the Buick Regal. These were General Motors’ bread and butter products and they were wildly successful. And it is here that GM makes its final, fatal collision; the corporate Titanic hitting the metaphorical iceberg.
GM sent these cars out of the factory with a multitude of quality glitches of which 231 engine issues were no small part. The oil pump was poorly designed, causing the oil pressure to sink dangerously low. By the time the consumer figured out something untoward was happening, the engine was apt to have blown a bearing or, worse, seized up. Game over. If your 231 engine didn’t throw a bearing, there were transmission “issues.” Cracked springs in the suspension. Rear wheel cylinders that fell off of their backing plates. All of this pushed many in the public towards their GM repair shop, and then, imports. The rest, as they say, is history.
Looking back, GM should have jumped in and cleaned up this multifarious mechanical disaster with honor and swiftness. At the time, they had enough cash to make all their customers whole. It would have been an extremely expensive PR disaster, but pretending there wasn’t a problem sealed their fate with hundreds of thousands of former loyalists.
GM tried to run from the warranty claims. Worse, they continued producing the 231 well into the 1980s. In the years that followed, it was mostly more of the same. GM sent out V8s with soft camshafts, torque steering X-cars and Fieros a quart low on oil. As the quality issues stacked up, GM’s market share deteriorated.
In the 1990s, they had one last chance. Cash rich from the SUV craze, GM could have re-invested the profits into their cars to make them mechanically-bulletproof world-beaters. Sadly, they squandered on brands and products and deals they didn’t need. And so here we sit in 2009, trying to bail them out, trying to figure out how to turnaround a submerged leviathan.