GM: Choosing to save money over a 57 cents part instead of ensuring car passenger safety

Posted on April 1, 2014



General Motors came under harsh criticism on Capitol Hill Tuesday as CEO Mary Barra went before members of Congress investigating a botched GM recall.

Barra, appearing before a House committee, apologized for the 13 deaths that GM says were caused by a faulty ignition switch, as well as GM’s 10-year delay in issuing a recall. That February recall has grown to 2.6 million vehicles worldwide.

“Today’s GM will do the right thing,” said Barra, who was named CEO in January. “That begins with my sincere apologies to everyone who has been affected by this recall, especially the families and friends (of those) who lost their lives or were injured. I am deeply sorry.”

Members from both sides of the aisle attacked both GM and the National Highway Traffic Safety Administration, the federal safety regulator.

“The red flags were there for GM and NHTSA to take action, but for some reason it didn’t happen,” said Tim Murphy, a Republican. “To borrow a phrase, what we have here is a failure to communicate, and the results were deadly.”

Related: GM – Steps to a recall nightmare

GM’s decision not to recall earlier: Democrat Diana DeGette said that GM elected not to replace a part that would have cost 57 cents a car because of cost and the lack of “an acceptable business case” for doing so.

“The company continued to sell cars knowing they were unsafe,” DeGette said. “We’re going to get to the bottom of this.” [Please click here to read the remainder of this article.]