Soring Motor Corporation, manufactures reliable energy efficient automobiles. While quality vehicles has always been the goal, most recently Soring has had to recall within 8 months over 3 million vehicles due to the fact that gas pedals began to stick which has caused massive unpredictable acceleration. Due to the recalls and issues of safety, production of several models have been halted. The break in production caused the company to lose a little more than $15 million in sales and about 23% of their customer base.  Of course in losing the customer base is caused by many factors not limited to reputation, credibility and quality factors of the vehicles.   Coming from the perspective of an automobile consumer, explain the financial and nonfinancial performance measures to evaluate quality and time. Explain how Soring Motor can determine what needs to be implemented to regain consumer trust. Be sure to include in your explanation the elements of the balanced scorecard.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Soring Motor Corporation, manufactures reliable energy efficient automobiles. While quality vehicles has always been the goal, most recently Soring has had to recall within 8 months over 3 million vehicles due to the fact that gas pedals began to stick which has caused massive unpredictable acceleration. Due to the recalls and issues of safety, production of several models have been halted. The break in production caused the company to lose a little more than $15 million in sales and about 23% of their customer base.  Of course in losing the customer base is caused by many factors not limited to reputation, credibility and quality factors of the vehicles.

 

  1. Coming from the perspective of an automobile consumer, explain the financial and nonfinancial performance measures to evaluate quality and time.
  2. Explain how Soring Motor can determine what needs to be implemented to regain consumer trust. Be sure to include in your explanation the elements of the balanced scorecard.
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