To say General Motors has a failure to communicate among itself and with the outside is an understatement that grows with each passing day, especially in light of how it treated a whistleblower in 2003 over its handling of a recall regarding fuel leaks in the automaker’s line of compact SUVs.
As promised in April before both the U.S. House and Senate, General Motors CEO Mary Barra will appear next Wednesday in Washington, D.C. for a second round of congressional hearings over the February 2014 GM ignition switch recall.
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.
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.
Automotive News reports General Motors will release Thursday the results of attorney Anton Valukas’s three-month independent internal investigation into how and where the automaker went wrong before recalling 2.6 million vehicles affected by an out-of-spec ignition switch linked to 47 accidents and at least 13 fatalities. The announcement will come at 9 a.m. Eastern via webcast, with what CEO Mary Barra says will be an “unvarnished” look at the events surrounding the recall. In addition, GM will have an update on plans for compensating victims of the switch, though the attorney heading up the affair, Kenneth Feinberg, says a formal announcement won’t come until a few weeks down the road. Reuters adds the Valukas report will likely exonerate Barra, former CEO Dan Akerson and other senior execs and board members of any wrongdoing over the recall, with “a number of people” to be formally dismissed from the company due to their ties to recall. The report will be turned over to the federal government by the end of June.
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.
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.
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.
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- Ollicat I have a Spyder. The belt will last for many years or 60,000-80,000 miles. Not really a worry.
- Redapple2 Cadillac and racing. Boy those 2 go together dont they? What a joke. Up there with opening a coffee shop in NYC. EvilGM be clowning. Again.
- Jbltg Rear bench seat does not match the front buckets. What's up?
- Theflyersfan The two Louisville truck plants are still operating, but not sure for how much longer. I have a couple of friends who work at a manufacturing company in town that makes cooling systems for the trucks built here. And they are on pins and needles wondering if or when they get the call to not go back to work because there are no trucks being made. That's what drives me up the wall with these strikes. The auto workers still get a minimum amount of pay even while striking, but the massive support staff that builds components, staffs temp workers, runs the logistics, etc, ends up with nothing except the bare hope that the state's crippled unemployment system can help them keep afloat. In a city where shipping (UPS central hub and they almost went on strike on August 1) and heavy manufacturing (GE Appliance Park and the Ford plants) keeps tens of thousands of people employed, plus the support companies, any prolonged shutdown is a total disaster for the city as well. UAW members - you're not getting a 38% raise right away. That just doesn't happen. Start a little lower and end this. And then you can fight the good fight against the corner office staff who make millions for being in meetings all day.
- Dusterdude The "fire them all" is looking a little less unreasonable the longer the union sticks to the totally ridiculous demands ( or maybe the members should fire theit leadership ! )