US Justice Dept, House Panel To Investigate GM Ignition Recall
Things are going from bad to worse for General Motors amid the fallout related to the long-delayed recall of 1.6 million vehicles worldwide over a faulty ignition switch installed between 2003 and 2007, as both the U.S. Justice Department and a House panel plan to conduct separate investigations into the matter.
Automotive News and Bloomberg report the Justice Department’s investigation will focus on whether or not GM violated criminal or civil laws in failing to alert regulatory bodies sooner than they had about the switch, with lawyers in the U.S. Attorney’s Southern District of New York office leading the charge.
Meanwhile, the House Energy and Commerce Committee will determine if either the automaker or the National Highway Traffic Safety Administration — who is also conducting an investigation into the recall via a 107-question survey due April 3 — missed anything “that could have flagged [the] problems sooner,” according to Representative Fred Upton, who also added:
If the answer is yes, we must learn how and why this happened, and then determine whether this system of reporting and analyzing complaints that Congress created to save lives is being implemented and working as the law intended.
On top of the aforementioned inquiries, GM itself has hired Jenner & Block LLP chairman Anton Valukas to head an internal investigation into the handling of the recall. Valukas was the appointed examiner for the Justice Department in the inquiry of Lehman Brothers over the financial institution’s downfall in the run-up to the Great Recession in late 2008.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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But, but, but, the B&B said there wouldn't be any investigation...
Wow, a House panel is going to investigate. Gee, that will surely be illuminating! The result is a foregone conclusion - the Republicans will blame it all on Obama. The only question is how badly they'll torture every principle of logical thought to drive to that conclusion.
The investigation will create a lot of heat, but no light. To Justice, it'll be another distraction from all the other scandals, and the House Committee will eventually lay the blame on the Highway Traffic Safety Administration, which will point the finger at GM, which will say it's "old" GM's problem. The Flying Fickle Finger Of Fate (FFFOF) will be pointing in all directions, with no resolution whatever, because something else will come along and the books will be closed quietly. We've all seen it before, haven't we?
GM was owned by the government for much of the time while the Ignition recall was waiting to be announced. The government was calling the shots at GM, controlling the board, firing and hiring CEOs and they are just as liable as GM is for any thing related to this including blame for not making it public earlier AND are a valid target for any potential lawsuits from any injuries or deaths. I'm sure both investigations will just aim to show the government had no knowledge of any of it, but that probably won't due much good as a shield.