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 On the eve of a high-profile hearing before a House of
Representatives panel, GM said it is recalling more than 1.5 million
additional vehicles globally. That brings its total recalls so far
this year to more than 6 million.
The Detroit-based automaker says it is taking an aggressive stance
on safety issues, after coming under intense criticism for waiting
more than a decade to recall millions of cars with potentially
faulty ignition switches.
On Monday, Democrats on the House Energy and Commerce Committee
released details of some of the more than 200,000 pages of documents
they have received from GM and a federal regulator.
The lawmakers said they want answers as to why GM employees approved
for production ignition switches that failed to meet company
standards. These faulty switches can cause engines to stall during
operation, which also disables airbags, power steering and power
brakes.
Lawmakers are also exploring whether another 14 fatalities could be
connected to the faulty ignition switches, citing data from the
National Highway Traffic Safety Administration regarding newer
models of the recalled cars.
Those deaths occurred in accidents with vehicles displaying some of
the same problems as those in the earlier fatalities.
The additional 14 deaths occurred after the 13 fatalities that GM
has connected to defective ignition switches.
GM CEO Mary Barra, who is set to appear before the House panel on
Tuesday, in prepared testimony extended her "sincere apologies" to
those affected by the recall, "especially to the families and
friends of those who lost their lives or were injured."
FIXING THE SWITCH
The bad publicity around the defective ignition switches has
tarnished GM's reputation even as the automaker moved to close the
chapter on its 2009 bankruptcy and $49.5 billion U.S. taxpayer
bailout.
With last year's launch of a redesigned version of its highly
profitable large pickup trucks and the recent reintroduction of a
quarterly dividend, many analysts had begun touting the company's
stock.
Lawmakers on Monday highlighted inconsistencies regarding the role
of a key GM engineer, Ray DeGiorgio, in a decision in 2006 to revise
the design of the ignition switch.
The change was made to the portion of the switch that holds the
ignition key in place as it clicks between off, accessory and on
positions, called the detent plunger and spring.
In an April 2013 deposition related to a crash in Georgia involving
a recalled GM car, DeGiorgio said the company "certainly did not
approve a detent plunger design change" for the 2006 replacement
ignition switches.
However, Representative Henry Waxman and other senior Democrats on
the House Energy and Commerce Committee said on Monday that "GM has
provided the panel with documentation verifying that a Ray DeGiorgio,
lead design engineer for the Cobalt ignition switch, signed off on a
Delphi ignition switch change on April 26, 2006."
GM declined to make DeGiorgio available for comment on Monday.
'WE WILL FIND OUT'
Barra and NHTSA acting Administrator David Friedman are set to
testify on Capitol Hill on Tuesday to an Energy and Commerce
subcommittee and on Wednesday to a Senate panel.
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In recent weeks, as more problems have surfaced with GM's ignition
switches, the company has expanded its car recalls. The U.S. Justice
Department has launched a criminal investigation and several
lawsuits have been filed against the company.
In Barra's opening statement that she plans to deliver on Tuesday,
she said: "I cannot tell you why it took years for a safety defect
to be announced in that (small car) program, but I can tell you that
we will find out."
The automaker has asked Delphi Automotive, manufacturer of the
switch, to add a third production line to build the replacement
parts to speed the recall, Barra said. GM previously said it
expected to replace switches in all recalled cars by around October,
but a spokesman said the recall's expansion on Friday may delay
that.
Included in the recall are the Chevrolet Cobalt and Saturn Ion
models.
Friedman, in his prepared testimony, pointed a finger at GM, saying
the automaker "had critical information that would have helped
identify this defect."
He called the GM probe "a difficult case," but defended his agency's
actions. "We are not aware of any information to suggest that NHTSA
failed to properly carry out its safety mission based on the data
available to it and the process it followed," Friedman said.
However, an October 2011 audit by the Department of Transportation's
inspector general found that NHTSA "lacks systematic processes" for
tracking consumer complaints, ensuring timely investigations of
defect complaints and training investigators. The agency argues it
has made improvements since that report.
QUESTIONS ABOUT 'FIX'
Delphi said the redesigned switches used in 2008-2011 models of the
recalled GM vehicles still did not meet GM standards, according to
the documents handed over to Congress.
"This information raises important new questions about what GM knew,
when GM knew about the risks from this faulty ignition switch, and
how the company has handled the recalls of affected vehicles,
including the recall of the 2008-2011 model year vehicles that was
announced just three days ago," senior Democrats on the House Energy
and Commerce Committee said.
A GM spokesman said that while Monday's recall regarding a loss of
power steering included several models affected by the defective
ignition switches, the issue was not related.
GM said it was aware of "some crashes and injuries" related to the
issue, but no fatalities.
The Detroit automaker said it will now take a charge in the first
quarter of about $750 million, mostly for the recalls it has
announced including the defective switches. That is up from $300
million it previously disclosed.
(Additional reporting by Eric Beech in Washington; editing by Karey
Van Hall and G. Crosse)
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