General Motors appoints safety vp following vehicle recall

General Motors is investigating why it took a decade to recall cars found to have potentially lethal ignition switches.

The Detroit-based multinational acknowledges the defective part was involved in 13 road deaths in the US during those years, and one victim’s mother claims it caused at least 29 fatalities.

The switch, which the company knew fell below its own specifications, can cause the engine to cut out in traffic, disabling power steering, power brakes and airbags and making vehicle control difficult. The replacement costs 57 cents (34p, 41 euro cents).
General Motors has now recalled 2.6 million cars.

Mary Barra, appearing before a US Congress energy and commerce sub-committee, said she first learnt of the problem when she became chief executive in January. The company then acted “without hesitation”.

Barra said: “We told the world we had a problem that needed to be fixed. We did so because, whatever mistakes were made in the past, we will not shirk from our responsibilities now and in the future.”

When asked why the company used the switch in the first place she drew a distinction between components below specifications and those that are defective and dangerous. Representative Joe Barton accused her of talking “gobbledygook”.

She admitted General Motors took too long to act but promised changes to prevent a recurrence.

Barra said: “Sitting here today, I cannot tell you why it took years for a safety defect to be announced … but I can tell you that we will find out.” She suggested one reason was poor liaison between departments.

She has already created the post of safety vice-president, who will appoint an executive to oversee safety issues.
Terry DiBattista, whose daughter was killed when the ignition failed causing her car to crash, said: “It’s clear GM’s concern was with its bottom line and not the safety of our loved ones.” She wants a criminal investigation into General Motors’ conduct.

Barra assured the sub-committee that the company had since moved from a cost culture to a customer culture.

General Motors has hired the mediation lawyer Kenneth Feinberg to consider compensation for victims’ families. Feinberg handled compensation funds after the World Trade Centre atrocity, the Boston marathon bombing and the BP oil spill. However, Barra did not commit the company to establishing a fund.

The inaction at General Motors mystifies Professor Cary Cooper, a business organisation specialist at Lancaster University.
Cooper said: “I can’t believe they haven’t got a systematic method of dealing with this sort of thing, but I doubt whether there was planned avoidance.

“Perhaps people weren’t speaking to one another, and for a long time. Maybe somebody didn’t want to take the matter to another level.”

He pointed out: “Big organisations often have bad communication.”

Toyota, too, has just discovered safety defects. It is recalling 6.4 million vehicles worldwide to remedy faults in spiral cable assemblies, seat adjustment rails and steering columns.

Toyota, the world’s biggest carmaker, faces a recall bill of more than £300m ($500m, €363m).

The company assured owners: “Worldwide there have been no reports of any accidents or injuries relating to these issues.”