This article is from the source 'washpo' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.washingtonpost.com/business/economy/gm-ceo-15-fired-over-ignition-switch-recalls-probe-shows-pattern-of-failures-no-coverup/2014/06/05/2dc575bc-ecb8-11e3-9f5c-9075d5508f0a_story.html?wprss=rss_homepage
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| GM CEO: 15 fired over ignition-switch recalls; probe shows pattern of failures, no coverup | |
| (35 minutes later) | |
| An investigation into General Motors’ failure to recall millions of small cars containing a deadly ignition-switch defect found no concerted effort to hide the problem, the automaker’s chief executive told employees Thursday. | |
| GM chief executive Mary T. Barra said 15 employees deemed responsible for the problem have been forced out of the company, and five others have been disciplined as a result of the probe. But she added that the investigation by Anton R. Valukas, a former U.S. attorney, did not tie the problems to top executives in the company. | |
| Rather than finding a coverup, the internal probe revealed a corporate culture in which employees failed to take responsibility for the ignition-switch problem. That resulted in the company waiting more than a decade to recall 2.6 million Chevrolet Cobalts and other small cars equipped with the defective switch, which has been linked to at least 13 deaths, Barra said. | |
| Barra said the report concluded the employees did not weigh costs against safety as they examined the problem. Instead, GM fundamentally “misdiagnosed” the ignition-switch problem, for years treating it as a customer satisfaction issue rather than a safety issue. | |
| At first, engineers and others in the company did not link the faulty ignition switch — which caused cars to inadvertently stall, stiffening brakes and steering and disabling air bags — to fatal crashes in which air bags did not deploy. | |
| Barra said employees did not share enough information or take enough initiative as evidence came in about the faulty switches, allowing the problem to fester. | Barra said employees did not share enough information or take enough initiative as evidence came in about the faulty switches, allowing the problem to fester. |
| “If this information had been disclosed, I believe in my heart the company would have dealt with this matter appropriately,” she said. | “If this information had been disclosed, I believe in my heart the company would have dealt with this matter appropriately,” she said. |
| Barra said GM has shared copies of the report with federal safety officials as well as members of Congress. Rep. Fred Upton (R-Mich.), whose committee has been investigating the recall debacle, said a subcommittee of his panel will hold a second round of hearings in several weeks. | Barra said GM has shared copies of the report with federal safety officials as well as members of Congress. Rep. Fred Upton (R-Mich.), whose committee has been investigating the recall debacle, said a subcommittee of his panel will hold a second round of hearings in several weeks. |
| Meanwhile, Sen. Claire McCaskill (D-Mo.), who is leading the Senate probe, said Thursday: “I’m going to reserve judgment until I can take a closer look at the report, which I expect to find comprehensive and thorough. And I’m looking forward to getting a full briefing from Mr. Valukas. I won’t be letting GM leadership, or federal regulators, escape accountability for these tragedies. That’s why I’ll be holding a follow-up hearing later this summer to address unanswered questions. The families of those affected deserve no less.” | Meanwhile, Sen. Claire McCaskill (D-Mo.), who is leading the Senate probe, said Thursday: “I’m going to reserve judgment until I can take a closer look at the report, which I expect to find comprehensive and thorough. And I’m looking forward to getting a full briefing from Mr. Valukas. I won’t be letting GM leadership, or federal regulators, escape accountability for these tragedies. That’s why I’ll be holding a follow-up hearing later this summer to address unanswered questions. The families of those affected deserve no less.” |
| Barra said flatly that the report revealed a pattern of “incompetence and neglect” within GM that she said would not be tolerated. | Barra said flatly that the report revealed a pattern of “incompetence and neglect” within GM that she said would not be tolerated. |
| Release of the report comes after the ignition-switch problem triggered a series of government investigations and lawsuits that prompted Barra to restructure GM’s top ranks to more quickly deal with safety problems. So far this year, the automaker has ordered 30 recalls affecting nearly 16 million vehicles in North America. The recalls alone have cost the automaker $1.7 billion. | |
| Still, the company’s troubles caused by the deadly defect are far from over. Last month, the National Highway Traffic Safety Administration levied a $35 million fine against GM, the highest amount allowed. | |
| The company has hired mediation specialist Kenneth R. Feinberg to create a compensation fund for families of crash victims by Aug. 1. On Thursday Feinberg said, “I have already drafted some preliminary compensation ideas and plan to share them in confidence over the next few weeks with lawyers, public-interest groups, GM and others interested in the compensation program.” | |
| The company is not expected to announce Feinberg’s findings for several weeks. Meanwhile, the company faces a spate of lawsuits from shareholders, dealers and others in connection with the defect. | The company is not expected to announce Feinberg’s findings for several weeks. Meanwhile, the company faces a spate of lawsuits from shareholders, dealers and others in connection with the defect. |
| In addition, the company is facing a series of government investigations, including a federal criminal probe that could result in financial penalties along the lines of the $1.2 billion paid by Toyota earlier this year for misleading consumers about unintended acceleration problems with several of its models. | |
| Despite those problems, GM sales are robust: Earlier this week the automaker reported that May was its best month in nearly six years, with sales up 13 percent over the previous May. | Despite those problems, GM sales are robust: Earlier this week the automaker reported that May was its best month in nearly six years, with sales up 13 percent over the previous May. |
| Related: GM releases results of internal probe of ignition-switch defect | Related: GM releases results of internal probe of ignition-switch defect |