Automaker continues to deal with fallout over delayed recall
General Motors is set to hold a major briefing on the results of its internal probe into the ignition switch debacle this morning, with early reports claiming that multiple employees could be terminated due to their role in the recall.
When it rains, it pours. General Motors has announced yet another major recall, covering 1.3 million units in the American market over concerns that their power steering could suddenly fail. As reported by The Detroit News' David Shepardson, GM has now recalled nearly ten times as many cars as it did all of last year.
NHTSA Declined Investigation In '07; GM Said Cost Of Fix Was 'Too High' In '05
A senior investigator within the National Highway Traffic Safety Administration wanted to open an investigation into defective Chevrolet Cobalt and Saturn Ion models in November 2007. The director of the agency's Defects Assessment Division had spotted a trend of airbag non-deployments in the two General Motors models – early evidence of a problem included four fatal accidents, 29 complaints and 14 field reports.
Days before Congress holds hearings on why it took General Motors so long to let millions of car owners know about a potentially deadly defect, the car company admitted more cars are affected and is recalling nearly one million more cars globally.
General Motors is facing additional lawsuits in California and Alabama relating to the faulty ignition switches that have forced it to recall some 1.6 million Chevrolet, Pontiac and Saturn vehicles. These suits are a bit different than GM's other legal issues, though.
US Senator Richard Blumenthal, a Democrat from Connecticut, is echoing the call of safety advocates in requesting that the Justice Department create a compensation fund for those killed or injured behind the wheel of General Motors vehicles with faulty ignition switches.
The ongoing investigation into General Motors' 1.6-million-car ignition recall continues to pick up steam, with most questions centering on what the company knew and when it knew it. On Tuesday, newly minted CEO Mary Barra held a press conference to directly address questions about GM's safety problems and their ramifications. In addition to public criticism and potential lawsuits, the business is facing multiple government examinations into how it handled the issue.
General Motors is facing an investigation from the National Highway Traffic Safety Administration over its handling of a recall affecting roughly 1.6 million cars, but the automaker may have found a legal shield from possible future consumer lawsuits. The solution hinges on the old, pre-bankruptcy GM, and the new company that emerged afterward. While the name is the same, on paper they are technically different firms.