ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, August 11, 1993                   TAG: 9308110149
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-1   EDITION: METRO 
SOURCE: From The Washington Post, Associated Press and staff reports
DATELINE:                                 LENGTH: Medium


SATURN HOPES RECALL WON'T TARNISH GM'S STAR CAR

"This is not a problem; it's an opportunity," said Burke O'Malley, owner of Saturn of Sterling. "If we handle it well, if we do more than what is expected, we might even win some new customers."

Saturn Corp., Detroit's acclaimed answer to Japanese auto quality, is recalling nearly all its cars to fix an electrical problem that could ignite fires under the hood even if the engine isn't running.

The General Motors Corp. subsidiary confirmed Tuesday that it has been notifying owners of more than 380,000 vehicles about the problem, which dealers are fixing for free.

The voluntary recall comes in response to owner reports of 34 fires over the past 2 1/2 years. No deaths or injuries were caused, according to Saturn and federal officials. And because of the way Saturn is handling the recall, many of the company's dealers say they believe the company's reputation will escape significant damage.

Still, it is the eighth and by far the biggest recall in the young history of Saturn, conceived more than a decade ago by GM to help arrest Japan's growing share of the U.S. car market. Other problems have included faulty windshield wipers and improper radiator coolant.

The recall also had the potential to blemish one of the most notable modern-day success stories for GM, the world's leading automaker, which has been beset by heavy financial losses and image problems in its other car-making operations. Saturn is ranked only behind Japanese luxury brands Lexus and Infiniti in customer satisfaction, according to J.D. Power and Associates.

Saturn dealers are offering free shuttle transportation, movie tickets and, in some cases, new cars to customers affected by the recall. Under Saturn's customer-satisfaction policy, vehicles with fewer than 1,500 miles of use can be returned for replacement within a month after purchase.

As of mid-day Tuesday there were no reports of consumers receiving a new car in the recall. "But our goal is to do more than what is expected," said Saturn spokesman James Farmer.

Fred McElmurray, general manager of Saturn of Roanoke Valley, said the Salem dealership sold 760 cars before April, when the defective alternator wiring was corrected.

The dealer on Monday repaired all of its cars in stock and has begun extended hours for its service department to take care of repairs to vehicles it has sold. The dealer expects to keep its service department open from 6 to 9 p.m. for the next 35 or 40 days to handle the repairs.

The work, which takes about 15 minutes, normally would cost $30 in parts and about $22 in labor, all of which is being paid by the manufacturer, McElmurray said. The dealer will pick up cars of any owners afraid to drive them and will provide rental cars, he said.

"Customers seem to feel pretty comfortable" with the arrangements, he said. "Customers are pretty happy that we're looking after them."



 by CNB