Reuters reports General Motors announced in its regulatory filing Thursday that it was under the microscope of five different government agencies related to its numerous recalls as of late. Aside from investigations by the U.S. Attorney’s Office for the Southern District of New York, the National Highway Traffic Safety Administration, and both houses of Congress, the automaker revealed the Securities and Exchange Commission and an unnamed state attorney general’s office were conducting their own probes. The filing also acknowledged GM was under the gun of 55 pending class action lawsuits in the U.S., and five of the same in Canada. GM said they were working with all of the investigations, though the automaker did not say what the SEC was looking for in its probe.
In an interview with New York Magazine, consumer advocate Ralph Nader said General Motors CEO Mary Barra has “a good opportunity” to make serious changes to the corporate cost culture that gave rise to the 2014 ignition recall crisis. Suggestions include appointing an independent ombudsman with a direct line to the president and CEO for engineers who need to speak out about possible problems without having to go through “cost-concerned bosses,” as well as holding accountable all involved in any cover-up of any potential product issues.
Nader also believes the federal government should go after personal prosecutions of those tied to the current recall, but adds that unless the media keeps putting the pressure on the Justice Department to do so, the only thing that could come is a settlement in the vein of the one reached between the agency and Toyota earlier this month.
Automotive News posits an earlier recall would have prevented a majority of fatalities tied to the 2005 – 2007 Chevrolet Cobalt’s ignition switch. According to their research, seven of the eight deaths occurred after April of 2006, when the improved switch was quietly introduced into the supply stream; one of the four fatalities linked to 2003 – 2007 Saturn Ions was found to have occurred after the April 2006 improved part introduction, as well.
Among other findings, only one of the eight Cobalt fatalities did not factor alcohol or seat belts into the equation, two of the eight deaths — one under “Old GM,” one under “New GM” — led to lawsuits that were settled prior to the February 2014 recall, and that some of the families found in their research never had any contact with the automaker.