EagleTribune.com, North Andover, MA

World/National News

June 6, 2014

GM ousts 15 employees over ignition-switch scandal

WARREN, Mich. (AP) — General Motors said yesterday that it has forced out 15 employees for their role in the deadly ignition-switch scandal and will set up a compensation fund for crash victims, as an internal investigation blamed the debacle on engineering ignorance and bureaucratic dithering, not a deliberate cover-up.

GM took more than a decade to recall 2.6 million cars with bad switches that are now linked to at least 13 deaths by the automaker’s count.

“Group after group and committee after committee within GM that reviewed the issue failed to take action or acted too slowly,” Anton Valukas, the former federal prosecutor hired by the automaker to investigate the reason for the delay, said in a 315-page report. “Although everyone had responsibility to fix the problem, nobody took responsibility.”

GM CEO Mary Barra said more than half the 15 employees forced out were senior legal and engineering executives who failed to disclose the defect and were part of a “pattern of incompetence.” Five other employees have been disciplined, she said, without identifying any of them.

The automaker said it will establish a compensation program covering those killed or seriously injured in the more than 50 accidents blamed on the switches. GM said not say how much money will be involved, but a Wall Street analyst estimated the payouts will total $1.5 billion.

Barra called the report “brutally tough and deeply troubling.”

The report lays bare a company that operated in “silos,” with employees who didn’t share information and didn’t take responsibility for problems or treat them with any urgency.

Valukas also portrayed a corporate culture in which there was heavy pressure to keep costs down, a reluctance to report problems up the chain of command, a skittishness about putting safety concerns on paper, and general bureaucratic resistance to change.

He described what was known as the “GM nod,” in which “everyone nods in agreement to a proposed plan of action but then leaves the room and does nothing.”

Text Only | Photo Reprints
Latest News
World/National News

Latest U.S. News
Denver Celebrates Pot at the County Fair Escaping Email: Inspired Vision or Pipe Dream? Obama Calls on Hamas to Release Israeli Soldier Hispanic Caucus Slams GOP for Border Bill Shifts Obama: GOP Not Even Trying to Solve Immigration Emory Prepares to Treat American Ebola Cases US Employers Add 209K Jobs, Rate 6.2 Pct House GOP Optimistic About New Border Bill Four Rescued From Crashed Plane Clinton Before 9-11: Could Have Killed Bin Laden Couple Channel Grief Into Soldiers' Retreat WWI Aviation Still Alive at Aerodrome in NY Raw: Woman Who Faced Death Over Faith in N.H. Russell Simmons, LL Cool J Visit Youth at Jail Raw: Obama Gets Hug From Special Olympian US, UN Announce Deal on Gaza Cease-Fire Despite Moratorium, Detroit Water Worries Remain Faith Leaders Arrested at DC Deportation Protest Family Dispute Cripples Northeast Grocery Chain CDC Warns Travelers Amid Ebola Outbreak
Latest World News
Hispanic Caucus Slams GOP for Border Bill Shifts Renewed Violence Taking Toll on Gaza Residents 2 Americans Detained in North Korea Seek Help Raw: Tunisia Closes Borders With Libya Gaza Truce Unravels; Israel, Hamas Trade Blame Clinton Before 9-11: Could Have Killed Bin Laden Today in History for August 1st Raw: Rescuers at Taiwan Explosion Scene US, UN Announce Deal on Gaza Cease-Fire US Warns Against Traveling to Ebola-hit Areas Raw: Deadly Taiwan Gas Leak Explosion Netanyahu Vows to Destroy Hamas Tunnels Malaysian PM: Stop Fighting in Ukraine Workers Dig for Survivors After India Landslide Fighting Blocks Access to Ukraine Crash Site Raw: Smoke, Explosions Fill Gaza Skyline Today in History for July 31st Raw: 16 Killed in Gaza Market Strike Raw: Guinea Rap Concert Stampede Kills 33+ Raw: Deadly Landslide Hits Indian Village
Photos of the Week