Boston, MA 06/06/2014 (wallstreetpr) – The United States biggest automaker General Motors Company (NYSE:GM) has shown the exit door to 15 of its workers for their failure to act swiftly following the death of 13 persons, as a result, of faulty ignition switches. The latest action follows based on its internal investigation with regard to faulty ignition switches.
Investigation Report
Though the investigation has absolved the involvement of any senior executives and conspiracy theory to cover up the ignition switch issue after it claimed the lives of 13 persons, General Motors Company (NYSE:GM)’s CEO Mary Barra spared no words in terming the slackness in the recall of impacted cars as a pattern of management inefficiencies.
The inquiry report found fault with 15 staff for their slowness to act swiftly to recall the impacted cars and termed their action as ‘incompetence and neglect.’ Most of the fired staff was either executive or senior levels. This included two of the staff who was allowed to go on paid leave earlier. The report indicated a history of failures and that no one was ready to take up the responsibility of fixing the issue. To the surprise of management, these staff has also failed to bring to the notice of the highest management.
While expressing her disappointment over the findings, she said that it should not have happened and that it was not acceptable while addressing the employees globally.
Cost of Recall
General Motors Company has spent about $400 million towards recalls in the recent quarter. The company’s CEO refused to speculate on possible future costs, as a result, of the recalls.
General Motors Company (NYSE:GM) has also established a compensation fund to help those either injured or killed due to the defect. Its president Dan Ammann said that expert Ken Feinberg will run the fund and identify as to those who will qualify. He has been authorized to take a final call on the quantum of compensation to be awarded to those affected by a faulty ignition switch issue.
