Thursday, June 12, 2014
GM Ignition Defects
The AP (6/12, Gordon) reports that GM CEO Mary Barra will appear before the House Energy and Commerce Committee’s oversight subcommittee on June 18, the panel said Wednesday, and will be joined by Anton Valukas, who conducted the internal investigation of GM’s recall problems. GM “said Barra wants to return to Congress and report to lawmakers on actions the company is taking in response to the situation.”
The New York Times (6/12, Wald, Subscription Publication, 9.65M) reports that the pair will face questions about why the company “failed to recognize a fatal defect in Chevrolet Cobalts and other small cars will testify before a House subcommittee next Wednesday.” Rep. Fred Upton and Tim Murphy, leaders of the committee and subcomittee respectively, said in a statement, “Mr. Valukas’s exhaustive report revealed disturbing truths about G.M.’s systemic and cultural failures that allowed this problem to go undiagnosed for over a decade. but many questions remain unanswered about the recalls and resulting changes within the company.”GM seeking black boxes from crashes. In a front-page story, the Wall Street Journal (6/12, A1, Spector, O'Connell, Subscription Publication, 5.51M) reports that facing a long spate of legal battles stemming from the defective ignition switches, the company is actively attempting to acquire the data recorders from accidents resulting from the defect.