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World/National News

April 2, 2014

13 GM traffic deaths are tied to a 57-cent part

(Continued)

Some of the questioners appeared surprised that Barra hadn’t reviewed the tens of thousands of pages of documents that GM submitted to the committee, and that she was unaware of some decision-making processes at the company.

Rep. Diana DeGette, D-Colo., held up a switch for one of the cars and said a small spring inside it failed to provide enough force, causing engines to turn off when they went over a bump.

DeGette showed how easy it was for a light set of car keys to move the ignition out of the “run” position.

GM has said that in 2005, company engineers proposed solutions to the switch problem, but the automaker concluded that none represented “an acceptable business case.”

“Documents provided by GM show that this unacceptable cost increase was only 57 cents,” DeGette said.

The 57 cents is just the cost of the replacement switch. The figure does not include the labor costs involved in installing the new part.

Barra testified that the fix to the switch, if undertaken in 2007, would have cost GM about $100 million, compared with “substantially” more now.

Under questioning, she said the automaker’s decision not to make the fix because of cost considerations was “disturbing” and unacceptable, and she assured members of Congress that that kind of thinking represents the old General Motors, and “that is not how GM does business” today.

“I think we in the past had more of a cost culture,” Barra said, adding that it is moving toward a more customer-focused culture.

Rep. Tim Murphy, R-Pa., chairman of the House Energy and Commerce Subcommittee on Oversight and Investigations, read from an e-mail exchange between GM employees and those at Delphi, which made the switch. One said that the Cobalt is “blowing up in their face in regards to the car turning off.”

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