Senate panel hears
testimony from General Motors CEO.
After
appearing before a House panel on Tuesday, General Motors CEO Mary Barra
appeared before a Senate Commerce Committee subcommittee Wednesday to discuss
GM’s handling of a faulty ignition switch in some of its vehicles which has
been linked to the deaths of 13 people. Coverage of Barra’s Senate testimony is
much lighter than that of her House testimony. Only two of the three networks
covered it Wednesday evening and there is less print coverage this morning.
Generally, the coverage portrays the Senate hearing as more harsh than the
House hearing, with many reports noting that senators accused GM of covering up
the defect and were skeptical of Barra’s claims that GM’s culture has changed
from that of the “old GM.”
The CBS Evening News (4/2, story 4, 3:15, Pelley, 5.58M) reported that
senators accused GM “of covering up a defect that has killed at least 13
people.” CBS (Glor) added that Barra faced “many questions,” including
why “no one has been dismissed over the delayed recall.” CBS also noted that
while Barra “says the recalled vehicles are still safe to drive as long as
drivers use the key only,” on Friday, a Federal judge in Texas “will hear a
request that all the recalled vehicles be parked immediately.”
NBC Nightly News (4/2, story 4, 2:35, Williams, 7.86M) reported that
Barra “came under withering attack for the company’s failure to order a recall
over a decade ago.” In addition, GM was “accused of criminal behavior by US
senators, many of them former prosecutors.” NBC (Costello) added that Barra
“still could not answer basic questions about GM policies and a decade delay in
ordering an ignition switch recall.” NBC added that a “smoking gun” may be an
“internal GM document obtained by NBC News authorizing a redesign to the
defective part of the ignition switch for new cars in 2006.” In addition, “a
House investigation has turned up more internal GM documents that cited high
costs as a reason for not ordering fixes way back in 2005.” According to NBC,
the Justice Department “has launched its own criminal investigation” into the
matter.
The New York Times (4/3, Vlasic, Wald,
Subscription Publication, 9.65M) reports that the tone of the Senate hearing
was “much harsher” as “senators more aggressively questioned Ms. Barra’s
contention that the cars are safe to drive and doubted her statement that the
company had moved from a culture of cost-cutting to one of safety and a focus
on the consumer.” Barra “frequently simply sat and listened as the senators
scolded her and the company.” She “frequently drew the ire of the senators when
she repeatedly did not answer questions, saying either that she did not know or
noting that an internal investigation was underway.” The panel also heard
testimony from acting NHTSA administrator David J. Friedman and the
Transportation Department’s inspector general, Calvin L. Scovel III.
The Wall Street Journal (4/3, Hughes, Bennett,
Subscription Publication, 5.51M) reports that as Barra sought to distance GM
from the “old GM,” she was met with harsh attacks from senators who were
clearly skeptical about how different the current company is from the one that
developed the faulty cars. The Journal notes that Sen. Richard Blumenthal told
Barra that if she were serious about breaking with the “culture” of the old GM,
she would agree to compensate those victims whose claims came before GM’s
bankruptcy and warn owners of cars with potential faulty ignition switches that
“they should not drive them until they are fixed – because they are unsafe.”
McClatchy (4/3, Gordon, Subscription
Publication, 23K) reports that Barra “withstood a barrage of questions and
accusations” from senators “demanding to know how the automaker could have
failed to fix the ignition switch for more than a decade.” Some “voiced
skepticism about Barra’s candor in denying that she knew about the problem
until Jan. 31 and in promising that the new GM, the one bailed out by taxpayers
in 2009, ‘will do what’s right.’”
Reuters (4/3, Klayman, Beech) also describes
Barra as under attack during the hearing in which senators accused GM of “criminal”
behavior and “a culture of cover-up.”
A separate story in the New York Times (4/3, Abrams, Ivory,
Subscription Publication, 9.65M) reports that for the families of people killed
in accidents involving the recalled GM cars, what is “most upsetting” is “the
fact that G.M. won’t tell them what they most want to know.” GM has “refused to
disclose publicly the list of the confirmed victims,” and the “enduring mystery
has left scores of grieving families playing a guessing game.” The families and
their attorneys “are running up against a technological reality beyond G.M.’s
narrow definition of victims: Because many of the cars and their so-called
black boxes were damaged or destroyed, there may not be enough evidence left
from the crashes to prove what happened.”
Customers
suing for “park-it” order on GM cars. Bloomberg News (4/3, Sandler, Calkins, 2.76M)
reports that US District Judge Nelva Gonzales Ramos will “consider forcing the
company to adopt what the customers call a ‘fail-safe solution’ to prevent
further accidents while the switches are replaced.” Bloomberg reports that the
“park-it” order was submitted along with a class-action lawsuit seeking $10
billion from GM, claiming that the cars are “too dangerous to drive.”
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