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GM suspends 2 engineers over ignition switch recall GM suspends 2 engineers over ignition switch recall
(about 4 hours later)
General Motors has suspended two engineers with pay for their part in the company’s long failure to recall Chevrolet Cobalts and other small cars equipped with a defective ignition switch linked to 13 deaths, the automaker said Thursday. General Motors suspended two engineers with pay for their part in the company’s long failure to recall Chevrolet Cobalts and other small cars equipped with a defective ignition switch linked to 13 deaths, the automaker said Thursday.
GM chief executive Mary T. Barra said that two engineers had been placed on leave after a briefing from Anton Valukas, a former federal prosecutor leading an internal company investigation into circumstances leading to the recall. The statement did not name the engineers. The company also said it is expanding the reach of its ignition-switch repair to include the replacement of lock cylinders for the 2.6 million vehicles being recalled, adding to the substantial financial toll resulting from the defect.
“This is an interim step as we seek the truth about what happened,” Barra said in a statement. “It was a difficult decision, but I believe it is best for G.M.” GM said faulty lock cylinders can permit the vehicle to keep running after the ignition key has been removed, raising the risk of roll-aways and crashes. The company said it knows of several hundred complaints of keys coming out of ignitions; in one case, the problem resulted in a crash and an injury claim. The company said it knows of no fatalities linked to the problem.
Later Thursday, GM said it is expanding its ignition switch repair to include the replacement of lock cylinders for the 2.6 million vehicles being recalled. The company said faulty lock cylinders can allow ignition keys to be removed while a vehicle is running, raising the risk of rollaways and crashes. GM also announced that it would take a charge of approximately $1.3­­­ billion in the first quarter, primarily for the cost of recall-related repairs and related courtesy transportation. Despite the huge financial hit, the company said it expects “to report solid core operating performance in the first quarter financial results.”
The company said it knows of several hundred complaints of keys coming out of ignitions and one case where the problem resulted in a crash and an injury claim. The company said it knows of no fatalities linked to the problem. GM chief executive Mary T. Barra said the two engineers were placed on leave after a briefing with Anton Valukas, a former federal prosecutor leading an internal investigation into the company’s handling of the flawed ignition switch.
Barra faced a barrage of questions in congressional hearings last week about GM’s slow recall, which began more than a decade after the company first noticed problems with the ignition switches. “This is an interim step as we seek the truth about what happened,” Barra said in a statement. “It was a difficult decision, but I believe it is best for GM.”
The work of a GM engineer came in for especially harsh scrutiny after a lawmaker accused him of lying under oath during a deposition last year in a civil case brought by the family of a Cobalt crash victim. Sen. Claire McCaskill (D-Mo.), who chaired a Senate subcommittee hearing into the matter, said flatly that Ray DeGiorgio, a GM engineer, had switched out the unsafe ignition switches in several models in 2006 then “covered it up” by using the same part number for the new switch. The statement did not name the engineers. But they were identified in multiple news reports as Ray DeGiorgio, the project engineer responsible for the Cobalt ignition switch, and Gary Altman, who was an engineering manager.
Documents GM turned over to Congress indicated that DeGiorgio approved a design change in 2006 that made the ignition switch less susceptible to being inadvertently turned off, which makes a car more difficult to steer and to stop, while disabling its air bags. Barra faced a barrage of questions in congressional hearings last week about GM’s slow recall, which was announced more than a decade after the company first noticed problems with the switches.
Asked by McCaskill whether DeGiorgio had lied under oath, Barra hedged. “The data that’s been put in front of me indicates that, but I’m waiting for the full investigation,” she said. “I want to be fair.” DeGiorgio’s work came in for especially harsh scrutiny after a lawmaker accused him of lying under oath during a deposition last year in a civil case brought by the family of a Cobalt crash victim. Sen. Claire McCaskill (D-Mo.), who chaired a Senate subcommittee hearing on the matter, said flatly that DeGiorgio had switched out the unsafe ignition switches in several models in 2006 and then “covered it up” by using the same part number for the new switch.
The answer angered lawmakers, who called on Barra to fire the engineer. In a statement Thursday, McCaskill called the suspensions long overdue. Documents that GM turned over to Congress indicate that DeGiorgio approved a design change in 2006 that made the ignition switch less susceptible to being jostled, shutting down the engine and making the car more difficult to steer and stop. Turning off the ignition switch can also disable passenger air bags.
“It’s about time,” the senator said. “Of the many frustrating moments in our hearing last week, an especially surreal one was learning that the GM employee who had obviously committed perjury hadn’t even been suspended and was still on the job in a role with a direct impact on the safety of GM’s products. This marks a small step in the right direction for GM to take responsibility for poor — and possibly criminal — decisions that cost lives and put millions of American consumers at risk.” Asked during the hearing whether DeGiorgio had lied under oath, Barra hedged. “The data that’s been put in front of me indicates that, but I’m waiting for the full investigation,” she said. “I want to be fair.”
For years, GM fielded reports about trouble with the ignition switch, but it took years for it to open a wide-ranging investigation into the matter. Early on, engineers proposed a fix, but it was rejected, apparently for cost reasons. That answer angered lawmakers, who called on Barra to fire the engineer. In a statement Thursday, McCaskill called the suspensions long overdue.
“None of the solutions presents an acceptable business case,” according to a GM memo given to congressional investigators. “It’s about time,” the senator said. “Of the many frustrating moments in our hearing last week, an especially surreal one was learning that the GM employee who had obviously committed perjury hadn’t even been suspended and was still on the job in a role with a direct impact on the safety of GM’s products. This marks a small step in the right direction.”
GM’s slow recall has triggered investigation by Congress, federal safety regulators and federal prosecutors, who are looking into possible criminal charges against the giant automaker. GM fielded reports about trouble with the ignition switch for years before taking action to address the problem. Early on, engineers proposed a fix, but it was rejected, apparently for cost reasons. “None of the solutions presents an acceptable business case,” according to a GM memo given to congressional investigators.
Barra, who took over as the automaker’s CEO in mid-January, has said repeatedly that she is working to change the culture at GM, which she said was “cost-conscious” in the difficult years before the company’s 2009 bankruptcy and federal bailout. GM’s slow recall has triggered investigations by Congress, federal safety regulators and federal prosecutors, who are looking into possible criminal charges against the giant automaker.
Last month, she announced creation of a top executive position focused on vehicle safety. Speaking at a worker town hall on Thursday, Barra said the company has launched a program to recognize employees for ideas that make vehicles safer and for speaking up “when they see something that could affect customer safety,” the company said in a statement. Barra, who took over as the company’s chief executive in mid-January, has said repeatedly that she is working to change the culture at GM, which she said was “cost-conscious” in the difficult years before the company’s 2009 bankruptcy and federal bailout.Last month, she announced the creation of a top executive position focused on vehicle safety.
“GM must embrace a culture where safety and quality come first,” Barra said. “GM employees should raise safety concerns quickly and forcefully, and be recognized for doing so.” Speaking at a worker town hall Thursday, Barra said the company has launched a program to recognize employees for ideas that make vehicles safer and for speaking up “when they see something that could affect customer safety,” the company said in a statement.