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GM accepts 'troubling' report on Chevrolet Cobalt recall | |
(35 minutes later) | |
General Motors (GM) has accepted the findings of a "brutally tough, deeply troubling" report into recalls of its Chevrolet Cobalt over ignition problems which have been linked to 13 deaths. | |
GM also said it would launch a compensation fund for crash victims and their families. | |
Chief executive Mary Barra said the report, which was carried out by former US Attorney Anton Valukas, found "the Cobalt saga was riddled with failures". | Chief executive Mary Barra said the report, which was carried out by former US Attorney Anton Valukas, found "the Cobalt saga was riddled with failures". |
She said 15 employees have been fired. | |
Five other workers who acted "inappropriately" have been disciplined. | |
To date, the firm has recalled 2.6 million cars with the defective switch. | To date, the firm has recalled 2.6 million cars with the defective switch. |
No cover-up | |
It took the carmaker more than a decade to report the ignition switch failures, in which the switch can slip out of the "run" position and effectively shut down the car, causing the driver to lose control. | |
Although the problem has been linked to 13 deaths so far, lawyers for victims put the total at closer to 60. | |
Ms Barra, in announcing the results of Mr Valukas's report which involved over 200 employee interviews and more than 40 million documents, promised to "fix the failures in our system". | |
However, in a statement, GM emphasized that the report had found no conspiracy or cover-up. | |
"The Valukas report confirmed that Mary Barra, [and other GM executives] Mike Millikin and Mark Reuss did not learn about the ignition switch safety issues and the delay in addressing them until after the decision to issue a recall was made on January 31, 2014," GM chairman Tim Solso said. | "The Valukas report confirmed that Mary Barra, [and other GM executives] Mike Millikin and Mark Reuss did not learn about the ignition switch safety issues and the delay in addressing them until after the decision to issue a recall was made on January 31, 2014," GM chairman Tim Solso said. |
Last month, GM paid a $35m fine - the maximum allowed by US law - for its failure to report the ignition switch problems in a timely manner. | |
Crash fund | |
The compensation fund will be run by Kenneth Feinberg, who also led claims processing in the wake of September 11 and the BP oil disaster in the Gulf of Mexico. | |
It will start taking claims on 1 August. | |
Shares in the US car giant barely budged in the wake of the report. | |
Earlier this week, it reported its best May sales in seven years. |