Boston, MA 06/10/2014 (wallstreetpr) – General Motors Company (NYSE:GM) through its Chief Executive officer Marry Barra has affirmed that there will be no further dismissals related to the slow handling of the company’s ignition switch recalls. The switch ignition problem has already caused 13 fatalities with the company incurring millions of dollars in repairs of the recalled vehicles, as well as fines.
GM Internal Investigation Report
Marry Barra feels that the company has undertaken all the required actions and that no further actions would be required pertaining to the matter. The Chief made the remarks during the company’s annual shareholders meeting held in Detroit as protesters gathered outside. The shareholders meeting was held after a three months internal investigation reports on the matter.
The 325 page report found out a pattern of incompetence and negligence that led to a delay in taking action against the faulty switch ignitions. The investigation did not find any signs of conspiracy to cover up the matter. The report concluded that the company’s engineering team and legal departments did not move with speed to grasp what was happening to prevent the fatalities that later happened.
Barra Held Blameless
General Motors Company (NYSE:GM)’s Chief executive officer Marry Barra was held blameless in the report having ousted 15 employees over the report findings. Barra has consequently appointed Kenneth Feinberg to oversee the creation of a compensation fund having run a similar fund for the September 11 terrorist attacks, as well as the 2010 BP Plc oil spill.
General motors will start accepting claims on the switch ignition problem starting August 1 although it is still unclear the total amount of compensation that will be required. Congressional leaders have already signaled that Marry Barra will be required to testify again as the Justice Department looks into the recalls.
General Motors Pays $35 Million in Fines
Last month the company agreed to pay $35 million as fines, handed down after the Transportation Department investigation on how the company handled the February recalls. The company’s commitment on the matter cannot go unnoticed considering it has added about 35 investigators to look into the matter.
General Motors Company (NYSE:GM) has gone as far as stepping recalls for other vehicles to prevent the current effects of switch ignition problems being felt again before the dust settles. The company has already recalled 14 million cars beating its previous record of 10.7 million, back in 2004.
