Category: Customer Relations
Reuters reports the lawsuits filed against General Motors over its decade-plus handling of the ignition switched linked to 13 fatalities and 54 accidents will all be reviewed by U.S. District Judge Jesse Furman in the Southern District of New York, as ruled Monday by the U.S. Judicial Panel on Multidistrict Litigation. The panel determined New York to be the appropriate venue for the hearings based upon the court’s handling of the 2009 bankruptcy that allowed the automaker to shed its former self, liabilities and all. The lawsuits to be heard by the bankruptcy judge involve economic damages, suits GM wants the judge to determine if they are blocked by the liability protections established upon its exit from bankruptcy.
Earlier this spring, Tesla ceased direct-sales at its two New Jersey showrooms due to enforcement of state law that prohibited such sales from auto manufacturers. That may soon change once a bill that would allow direct-sales to begin again comes to a vote before the New Jersey Assembly.
As more vehicles come with infotainment systems mounted in the dashboard console, consumers are beginning to face the issue of losing privacy behind the driver’s seat.
Automotive News reports General Motors CEO Mary Barra delivered a 15-minute blistering speech before those in attendance and online regarding the Valukas report, which detailed the how and why a defective ignition switch first brought to life in 2001 led to the February 2014 recall of 2.6 million vehicles so equipped and the firestorm that followed. In her words, “nobody took responsibility” for the problems, that “there was no demonstrated sense of urgency” during the time period to fix the problems that still haunt the automaker. Barra added that she would never put the recall crisis behind GM, to “keep this painful experience” permanently upon the head of the corporation so as nothing like this would ever occur once more. At the end, she proclaimed her belief in GM and its employees in being able to face “the truth” about itself, and that the General overall was better than its previous actions.
The Detroit News reports Kenneth Feinberg, whose services were retained by General Motors regarding compensation for victims of the out-of-spec ignition switch linked to 47 accidents and at least 13 fatalities, stated an announcement regarding compensation is “a few weeks away.” Feinberg adds that while his client may be making its own statement on the matter, “it will not include any details about a compensation plan since no such plan yet exists.” The attorney has worked on similar programs in the past, including those affected by the 2011 BP/Deepwater Horizon disaster, Agent Orange, asbestos and the attacks in New York, Pennsylvania and Washington, D.C. in early September of 2001.
With Toyota still in its sights, Volkswagen plans to triple the number of SUVs in its lineup in its fight for the top sales podium among the Global Three.
A coalition of eight states have adopted a plan to encourage automakers to help meet the target of 3.3 million ZEVs taking to the road as required by the Clean Air Act by 2025.
Last week, the B&B learned from former General Motors CEO Dan Akerson that current CEO Mary Barra did not know about the ignition switch that has since given his old company a months-long headache. The B&B then asked if Akerson himself knew of the problem on his way to be at his wife’s side and that of his colleagues at The Carlyle Group.
Automotive News reports the answer is “No.” In a post on Forbes magazine’s blog, both he and GM chair Tim Solso claim they didn’t know about the ignition switch issues at the heart of the February 2014 recall of 2.6 million vehicles. Akerson stated that if he had known about the problem, Barra would have been made aware as he handed the reins of the automaker to her in late December 2013. Solso says he didn’t become aware until after Barra called him to let him know the bad news, having become a non-voting member of the board in the following January.
In an effort to keep its U.S. customer base satisfied — and to potentially boost sales — Volkswagen is planning on delivering the goods to the market at a faster clip than current.