Boston, MA 06/16/2014 (wallstreetpr) – The biggest automaker in the U.S. General Motors Company (NYSE:GM) employees of current, as well as, former, are under the scanner of the government prosecutors. The move comes in the wake of the company recalling a record number of vehicles in the current year particularly the alleged link with the 13 deaths associated with ignition switch issue.
Employees Interviewed
As part of the criminal investigation into the company’s switch issue, the U.S. prosecutors are interviewing both the current, as well as, the past employees, a Reuters report indicated. The news also comes on the heels of General Motors Company (NYSE:GM)’ chief executive officer Mary Barra showing the exit door to 15 of its employees about ten days back for their failure to act in time and bring to the management attention. The company’s internal investigation also absolved its senior management executives of any wrong doings or conspiracy theory.
The report said quoting sources that U.S. Attorney of Manhattan Preet Bharara’s office had called the current, as well as, past employees for interviews. Aside from this, the investigation is being done by at least eleven State attorney Generals on the same ignition switch issue. The states included Connecticut, Arkansas, Florida, Illinois, Iowa, Indiana, Kansas, Kentucky, Nevada, Louisiana, and New York, Reuters report indicated.
There are reportedly at least 18 complaints from the consumers after 2009 in connection with Camaros involving engines freezing or an unexpected loss of power, the report quoting the database of the National Highway Traffic Safety Administration indicated.
Recall of Vehicles
In one of the worst recall of vehicles in the history of the company, General Motors Company (NYSE:GM) has recalled 16.5 million vehicles in the current year alone through 38 actions. Of this, 3.1 million vehicles recall was linked with ignition switch issue. The record number of recall is as much as the entire automobile industry expects the sale of vehicles in the current year in the U.S.
So far, the company indicated that it has spent $400 million for recalls during the March quarter. Its CEO refused to speculate on the potential cost of the recalls and the resultant impact in its balance sheet.
