General Motors Digest: June 27, 2014

Cameron Aubernon
by Cameron Aubernon

In today’s General Motors digest: The automaker rescinds its stop-sale of 33,000 Chevrolet Cruzes over Takata air bag issues, recalls 29,019; Delphi turns over documents to a federal grand jury; Kenneth Feinberg’s compensation plan will be revealed Monday; and CEO Mary Barra says more recalls may be coming, but no more people will be fired as a result of the Valukas report.

Automotive News reports GM lifted its stop-sale order of 33,000 2013 – 2014 Chevrolet Cruzes due to a defective airbag inflator found in units provided by supplier Takata once the automaker accounted for all the affected vehicles by comparing VINs to the parts list. Detroit Free Press adds GM then recalled the affected units, totaling 29,019, all of them still under its new vehicle warranty. The defect, if not treated, could result in the inflator — and the airbag unit overall — catastrophically exploding or non-deployment of the airbag in an accident.

Speaking of suppliers, The Detroit News says Delphi delivered hundreds of documents related to its part of the February 2014 ignition switch recall to the U.S. Justice Department via grand jury subpoena. The supplier also sought confidential treatment in turning over the requested documents. Meanwhile, the U.S. House Energy and Commerce Committee made public 80 emails and other documents by the automaker and the supplier illustrating GM’s struggles with the ignition switch, painting “a disturbing and devastating picture, a beyond-worst-case systemic breakdown that led to lives needlessly lost,” according to U.S. Representatives Tim Murphy of Pennsylvania and Fred Upton of Michigan.

Automotive News reports Kenneth Feinberg, the victim-compensation expert hired by GM to compensate victims of the defective ignition switch, will announce his plan Monday at 10 a.m. in Washington, D.C. Though no dollar amount will likely be pegged in the announcement, the terms of the plan could sway victims into accepting compensation over filing a lawsuit against GM. The automaker did not provide its own estimate, as well.

Finally, Reuters reports CEO Mary Barra said during an interview with Matt Lauer on NBC’s “The Today Show” that more recalls could come down the pike, based on data received. She also commented on the Feinberg plan, stating her company wants “every single person who either lost a loved one or has a serious physical injury to be a part of that program.” Detroit Free Press adds that when Lauer asked if there would be more firings linked to the ignition switch, Barra proclaimed everyone who would be let go has been let go. She emphasized that the “silos of information” that obfuscated the issue were being torn down, with employees taking notes during safety meetings that are then presented to her for review.

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  • DenverMike DenverMike on Jun 29, 2014

    Poor BAFO. You must be immensely butt sore about a few things, although not our fault. Look elsewhere for that. But I'll be the 1st one to tell you it doesn't take much of anything special to be a business owner with some amounts of success. You don't have to be a "rocket scientist" like you claim to be... I tell 'new start-ups' to forget the 'numbers' they're so extremely focused on. Just do your absolute best to please the customer and the rest will fall into place. But I actually did start out with the lemonade stands, mowing lawns, building/selling BMX bikes, etc. I caught the bug early on, and I can't see myself punching a time-clock and seeing my talents and hard work capitalized by someone else's company so I can get a tiny percentage of that. If anything, it takes more ballz than brains to leave the corporate world and strike out on your own. Obviously you have neither.

  • Big Al from Oz Big Al from Oz on Jun 29, 2014

    @DiM You an ex-corporate manager??? Get real. Full size pickup market in Spain?? Your comments that you live in a 10 square home and only lead a meager existence?? Somehow much of what you put forward doesn't meet this comment. I think the American dream is just that for you...........a dream.

    • DenverMike DenverMike on Jun 29, 2014

      @BAFO - I did say I live well within my means and own (outright) several bigger houses that I've renovated or in the process, as rentals. I donate at least 1000 hours a year to Habitat for Humanity alone. That's building homes for the poor and donating time and excess materials at local ReStores. Plus food/blood drives, community pantry and more. I don't consider myself successful, but very fortunate, yes. I'm very satisfied doing what I enjoy most, 7 days a week. I have a lot of help I get from my generous friends/family/neighbours, or none of this would be possible.

  • MaintenanceCosts We need cheaper batteries. This is a difficult proposition at $50k base/$60k as tested but would be pretty compelling at $40k base/$50k as tested.
  • Scott ?Wonder what Toyota will be using when they enter the market?
  • Fred The bigger issue is what happens to the other systems as demand dwindles? Will thet convert or will they just just shut down?
  • Roger hopkins Why do they all have to be 4 door??? Why not a "cab & a half" and a bit longer box. This is just another station wagon of the 21st century. Maybe they should put fake woodgrain on the side lol...
  • Greg Add me to the list: 2017 Sorento EX AWD w/2.0 Turbo GDI 68K miles. Changed oil religiously with only synthetic. Checked oil level before a rare long road trip and Ievel was at least 2 quarts down. That was less than 6 months after the last oil change. I'm now adding a quart of oil every 1000 miles and checking every 500 miles because I read reports that the oil usage gets worse. Too bad, really like the 2023 Tuscon. But I have not seen Hyundai/Kia doing anything new in terms of engine development. Therefore, I have to suspect that I will ony become a victim of a fatally flawed engine development program if I were to a purchase another Kia/Hyundai.