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General Motors' Mary Barra faces US lawmakers | |
(about 2 hours later) | |
General Motors chief executive Mary Barra told US lawmakers that she was never informed about problems relating to faulty ignition switches. | |
Facing intense questioning from Congress over GM's handling of the safety scandal, Ms Barra said culture at the carmaker had changed. | |
Although she appeared in Washington just 11 weeks ago, questions lingered over GM's handling of the recall. | |
Ms Barra reaffirmed the faulty switches had been linked to 13 deaths so far. | |
She said that Kenneth Feinberg - the man tasked with setting up and administering a compensation fund for victims - would release his criteria for victim compensation by the end of this month. | |
Ms Barra said that the fund would cover any person who suffered a serious injury due to the ignition defect. | |
'Culture of secrecy' | |
In prepared testimony, Ms Barra said the firm accepted a "brutally tough and deeply troubling" report into why the carmaker failed to issue a recall or safety notice earlier, after the problems had been reported nearly ten years ago. | In prepared testimony, Ms Barra said the firm accepted a "brutally tough and deeply troubling" report into why the carmaker failed to issue a recall or safety notice earlier, after the problems had been reported nearly ten years ago. |
She promised that changes had been made to alter GM's "culture of secrecy" and said that those responsible for failing to report the problem had been disciplined or fired. | |
The report - which was carried out by former US Attorney Anton Valukas - exonerated Ms Barra and other top executives, saying that lower-level employees failed to alert them to the safety issue. | |
Many lawmakers expressed scepticism that Ms Barra, who was head of product development for a period before rising to leadership, remained unaware of the problem with the switches. | |
One lawmaker read an email from 2005 in which a GM employee detailed how she had lost control of the car she was driving after the ignition switch suddenly turned off. | |
Ms Barra said she had never seen the email. | |
Still buying | |
The hearing came days after GM announced another recall of 3.2 million cars. | |
In total, the firm has recalled 44 million cars this year - significantly more than the total vehicles it sold in 2013. | |
Safety actions have cost GM a total of $2bn (£1.2bn) this year. | Safety actions have cost GM a total of $2bn (£1.2bn) this year. |
That includes the $35m the carmaker was fined by the National Highway Traffic Safety Administration for its failures to report the safety defect. That was the maximum amount allowed under US law. | |
However, US car buyers seem to accept GM's assurances that changes have already been made at the firm. | |
GM reported its best May sales in seven years a few weeks ago, and its share price is just above what it was when the firm announced the first round of recalls on 13 February. |