• Sign in to follow this  
    Followers 0

    GM Fined $35 Million Over The Slow Response On The Ignition Switch Recall


    • Gulp.. GM Gets Slammed With A $35 Million Fine


    General Motors has agreed to pay a $35 million fine over its handling of the ignition switch recall. This amount represents the maximum fine issued by the Government.

    "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said U.S. Transportation Secretary Foxx.

    The ignition switch recall covers 2.6 million Chevrolet Cobalt, HHR, Pontiac G5, Solstice, Saturn Ion, and Sky models built from the 2005 to 2011 model years. This problem is linked to 31 accidents and 13 deaths.

    "No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle," said NHTSA Acting Administrator David Friedman. "It's critical to the safety of the driving public that manufacturers promptly report and remedy safety-related defects that have the potential to lead to deaths or injuries on our nation's highways."

    As part of the agreement, GM will also,

    • Share results of the internal probe into why the recalls were delayed with NHTSA
    • Make "significant and wide-ranging" changes to how it finds defects and announces recalls
    • Work on increasing efforts to contact owners of the affected vehicles about the problem
    • Pay an additional amount of money to the Government for withholding information

    “We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety. We will emerge from this situation a stronger company,” said GM CEO Mary Barra in a press release.

    Source: General Motors, National Highway Traffic Safety Administration

    William Maley is a staff writer for Cheers & Gears. He can be reached at william.maley@cheersandgears.comor you can follow him on twitter at @realmudmonster.

    Press Release is on Page 2


    GM Signs Consent Order with National Highway Traffic Safety Administration

    DETROIT – General Motors Co. (NYSE: GM) has come to an agreement with the National Highway Traffic Safety Administration (NHTSA) for failing to report in a timely manner the ignition switch defect. As part of this agreement, GM will pay a $35 million fine.

    “We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety,” said GM CEO Mary Barra. “We will emerge from this situation a stronger company.”

    Working with NHTSA, GM has already begun reviewing processes and policies to avoid future recalls of this nature.

    “We are working hard to improve our ability to identify and respond to safety issues,” said Jeff Boyer, vice president of Global Vehicle Safety, who is assigned to integrate safety policies across the company. “Among other efforts, GM has created a new group, the Global Product Integrity unit, to innovate our safety oversight; we are encouraging and empowering our employees to raise their hands to address safety concerns through our Speak Up for Safety initiative, and we have set new requirements for our engineers to attain Black Belt certification through Design for Six Sigma.”

    Having signed this agreement, GM now has its sights set on effectively serving customers and completing the ignition switch recall.

    “GM’s ultimate goal is to create an exemplary process and produce the safest cars for our customers – they deserve no less,” said Barra.

    U.S. Department of Transportation Announces Record Fines, Unprecedented Oversight Requirements in GM Investigation

    Friday, May 16, 2014

    • General Motors agrees to pay maximum $35 million penalty for violating federal safety laws in Chevrolet Cobalt investigation

    WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today announced that General Motors (GM) has agreed to pay a record $35 million civil penalty and to take part in unprecedented oversight requirements as a result of findings from NHTSA's timeliness investigation regarding the Chevrolet Cobalt and the automaker's failure to report a safety defect in the vehicle to the federal government in a timely manner. The defect resulted in the non-deployment of airbags in certain Chevrolet Cobalt and other GM models. This action represents the single highest civil penalty amount ever paid as a result of a NHTSA investigation of violations stemming from a recall.

    As part of today's agreement, set forth in a Consent Order signed with NHTSA, the agency also ordered GM to make significant and wide-ranging internal changes to its review of safety-related issues in the United States, and to improve its ability to take into account the possible consequences of potential safety-related defects. GM will also pay additional civil penalties for failing to respond on time to the agency's document demands during NHTSA's investigation.

    "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said U.S. Transportation Secretary Foxx. "While we will continue to aggressively monitor GM's efforts in this case, we also urge Congress to support our GROW AMERICA Act, which would increase the penalties we could levy in cases like this from $35 million to $300 million, sending an even stronger message that delays will not be tolerated."

    Federal law requires all auto manufacturers to notify NHTSA within five business days of determining that a safety-related defect exists or that a vehicle is not in compliance with federal motor vehicle safety standards and to promptly conduct a recall. GM admits in the Consent Order that it did not do so.

    Today's action is historic in that the provisions of the Consent Order will be immediately enforceable in federal court if GM does not fully comply. The Consent Order will hold GM accountable, push the automaker to make needed institutional change, and ensure that replacement parts are produced quickly and recalled vehicles are repaired promptly.

    "No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle," said NHTSA Acting Administrator David Friedman. "It's critical to the safety of the driving public that manufacturers promptly report and remedy safety-related defects that have the potential to lead to deaths or injuries on our nation's highways."

    In the Consent Order, GM agreed to provide NHTSA with full access to the results of GM's internal investigation into this recall, to take steps to ensure its employees report safety-related concerns to management, and to speed up the process for GM to decide whether to recall vehicles.

    The Consent Order also requires GM to notify NHTSA of changes to its schedule for completing production of repair parts by October 4. GM must also take steps to maximize the number of vehicle owners who bring in their vehicles for repair, including targeted outreach to non-English speakers, maintaining up-to-date information on its website, and engaging with vehicle owners through the media. The Consent Order requires GM to submit reports and meet with NHTSA so that the agency may monitor the progress of GM's recall and other actions required by the consent order.

    Both in 2007 and again in 2010, NHTSA reviewed data related to the non-deployment of airbags in certain Chevy Cobalt models but each time, determined that it lacked the data necessary to open a formal investigation. However, on February 7, 2014, GM announced it would recall certain model vehicles for a defect where the vehicle's ignition switch may unintentionally move out of the "run" position that could result in the air bag not deploying in the event of a crash. GM had failed to advise NHTSA of this defect at the time of the agency's earlier reviews.

    After review and consultation by NHTSA, GM twice expanded the recall to include a total of 2,190,934 vehicles in the United States. The GM recall covers the 2005-2010 Chevrolet Cobalt, 2007-2010 Pontiac G5, 2003-2007 Saturn Ion, 2006-2011 Chevrolet HHR, 2006-2010 Pontiac Solstice and 2007-2010 Saturn Sky vehicles.

    Over the past ten years, NHTSA defect investigations resulted in 1,299 recalls involving more than 95 million vehicles and items of motor vehicle equipment, which has helped the agency to reduce vehicle fatalities to historic, all-time lows. Including today's consent order, the agency has obtained record fines of $124.5 million in the last five years from automakers who have failed to promptly report defects to NHTSA.

    0


    Sign in to follow this  
    Followers 0


    User Feedback


    Glad to see they can move forward putting this behind them. GM CEO Mary Barra is my favorite CEO GM has had to date. She truly is driving change for the better at GM and hopefully other American companies will notice it also.

    0

    Share this comment


    Link to comment
    Share on other sites

    Still worried about the effect of this. While I have no issue picking up another GM car, I've noticed it has changed some people's views on it.

    Media based or not, it is not a good thing.....

    0

    Share this comment


    Link to comment
    Share on other sites

    People still buy Toyotas. Granted, their reputation has been stronger than GM's, but still, people will buy what they are used to or what they think looks good, despite recalls or bad press.

    0

    Share this comment


    Link to comment
    Share on other sites

    The strange fall-out from this is that now all car makers are going to be rushing out with big recalls. My bet is that we'll see a bunch of big recalls announce over the next few months and the GM recalls will kind of be drowned out in the noise.

    1

    Share this comment


    Link to comment
    Share on other sites


    Your content will need to be approved by a moderator

    Guest
    You are commenting as a guest. If you have an account, please sign in.
    Add a comment...

    ×   You have pasted content with formatting.   Remove formatting

    ×   Your link has been automatically embedded.   Display as a link instead

    ×   Your previous content has been restored.   Clear editor




  • Popular Stories

  • Today's Birthdays

    1. svz-07
      svz-07
      (37 years old)
  • Similar Content

    • By William Maley
      This morning, General Motors announced that it would be investing $1 billion into their manufacturing operations in the U.S. The investment will go towards “new vehicle, advanced technology and component projects,” that will create or retain 1,500 jobs. GM also announced that it would create at least 5,000 more jobs in the U.S. for various parts of their business, and insource the production of axles for their next-generation of full-size trucks to create 450 jobs.
      Announcements on where the investments will go will be announced at a later date.
       
      “As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners. The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value,” said GM Chairman and CEO Mary Barra in a statement.
      This news comes on the heels of comments made by President-elect Donald Trump on possibly imposing a 35 percent tariff on vehicles built in Mexico. According to NBC News, various General Motors officials stress these moves were months, and some years in the making.
      Source: General Motors, NBC News
      Press Release is on Page 2


      GM Announces 7,000 U.S. Jobs, Builds Off Strong Track Record
      Investing Additional $1 Billion in U.S. Manufacturing Moves Axle Jobs to U.S. from Mexico More than 5,000 New Jobs in Key Growth Areas    DETROIT – General Motors today announced that it will invest an additional $1 billion in U.S. manufacturing operations. These investments follow $2.9 billion announced in 2016 and more than $21 billion GM has invested in its U.S. operations since 2009.
      The new investments cover multiple new vehicle, advanced technology and component projects. A combination of 1,500 new and retained jobs are tied to the new investments. Details of individual projects will be announced throughout the year.
      The company also announced it will begin work on insourcing axle production for its next generation full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 U.S. jobs.
      “As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners,”  said GM Chairman and CEO Mary Barra. “The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value.”
      GM’s announcement is part of the company’s increased focus on overall efficiency over the last four years. With a strategy to streamline and simplify its operations and grow its business, GM has created 25,000 jobs in the U.S. − approximately 19,000 engineering, IT and professional jobs and 6,000 hourly manufacturing jobs – and added nearly $3 billion in annual wages and benefits to the U.S. economy over that period. At the same time, GM reduced more than 15,000 positions outside the U.S., bringing most of those jobs to America. During that period, the company moved from 90 percent of its IT work being outsourced to an insourced U.S.-based model.
      “We will continue our commitment to driving a more efficient business,” said Barra, “as shown by our insourcing of more than 6,000 IT jobs that were formerly outside the U.S., streamlining our engineering operations from seven to three, with the core engineering center being in Warren, Michigan, and building on our momentum at GM Financial and in advanced technologies.  These moves, and others, are expected to result in more than 5,000 new jobs in the U.S. over the next few years.”
      GM has also been facilitating its supplier base to do the same. The company has been executing a strategy to create supplier parks adjacent to its U.S. manufacturing sites (already accomplished at GM’s Fairfax Assembly Plant in Kansas, Spring Hill Assembly Plant in Tennessee, Fort Wayne Assembly Plant in Indiana, and Lordstown Assembly Plant in Ohio), and will continue to expand this effort. Supplier parks locating near assembly plants result in significant savings from reduced transportation costs, higher quality communications and continuous improvement activities as suppliers are located closer to the final assembly location.
      In addition, GM is confirming that another supplier has committed to make components for GM’s next-generation full size pick-up trucks in Michigan, moving 100 supplier jobs from Mexico to the U.S.

      View full article
    • By William Maley
      This morning, General Motors announced that it would be investing $1 billion into their manufacturing operations in the U.S. The investment will go towards “new vehicle, advanced technology and component projects,” that will create or retain 1,500 jobs. GM also announced that it would create at least 5,000 more jobs in the U.S. for various parts of their business, and insource the production of axles for their next-generation of full-size trucks to create 450 jobs.
      Announcements on where the investments will go will be announced at a later date.
       
      “As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners. The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value,” said GM Chairman and CEO Mary Barra in a statement.
      This news comes on the heels of comments made by President-elect Donald Trump on possibly imposing a 35 percent tariff on vehicles built in Mexico. According to NBC News, various General Motors officials stress these moves were months, and some years in the making.
      Source: General Motors, NBC News
      Press Release is on Page 2


      GM Announces 7,000 U.S. Jobs, Builds Off Strong Track Record
      Investing Additional $1 Billion in U.S. Manufacturing Moves Axle Jobs to U.S. from Mexico More than 5,000 New Jobs in Key Growth Areas    DETROIT – General Motors today announced that it will invest an additional $1 billion in U.S. manufacturing operations. These investments follow $2.9 billion announced in 2016 and more than $21 billion GM has invested in its U.S. operations since 2009.
      The new investments cover multiple new vehicle, advanced technology and component projects. A combination of 1,500 new and retained jobs are tied to the new investments. Details of individual projects will be announced throughout the year.
      The company also announced it will begin work on insourcing axle production for its next generation full-size pickup trucks, including work previously done in Mexico, to operations in Michigan, creating 450 U.S. jobs.
      “As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners,”  said GM Chairman and CEO Mary Barra. “The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value.”
      GM’s announcement is part of the company’s increased focus on overall efficiency over the last four years. With a strategy to streamline and simplify its operations and grow its business, GM has created 25,000 jobs in the U.S. − approximately 19,000 engineering, IT and professional jobs and 6,000 hourly manufacturing jobs – and added nearly $3 billion in annual wages and benefits to the U.S. economy over that period. At the same time, GM reduced more than 15,000 positions outside the U.S., bringing most of those jobs to America. During that period, the company moved from 90 percent of its IT work being outsourced to an insourced U.S.-based model.
      “We will continue our commitment to driving a more efficient business,” said Barra, “as shown by our insourcing of more than 6,000 IT jobs that were formerly outside the U.S., streamlining our engineering operations from seven to three, with the core engineering center being in Warren, Michigan, and building on our momentum at GM Financial and in advanced technologies.  These moves, and others, are expected to result in more than 5,000 new jobs in the U.S. over the next few years.”
      GM has also been facilitating its supplier base to do the same. The company has been executing a strategy to create supplier parks adjacent to its U.S. manufacturing sites (already accomplished at GM’s Fairfax Assembly Plant in Kansas, Spring Hill Assembly Plant in Tennessee, Fort Wayne Assembly Plant in Indiana, and Lordstown Assembly Plant in Ohio), and will continue to expand this effort. Supplier parks locating near assembly plants result in significant savings from reduced transportation costs, higher quality communications and continuous improvement activities as suppliers are located closer to the final assembly location.
      In addition, GM is confirming that another supplier has committed to make components for GM’s next-generation full size pick-up trucks in Michigan, moving 100 supplier jobs from Mexico to the U.S.
    • By William Maley
      China has fined General Motors $29 million for monopolistic pricing according to Reuters. This ends speculation that we first brought to light last week. The fine is due to GM setting minimum prices on certain Buick, Cadillac, and Chevrolet models.
      "GM fully respects local laws and regulations wherever we operate. We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter," GM said in a email statement.
      It was speculated that the fine is due to comments made by president-elect Donald Trump about the U.S. possibly recognizing Taiwan. But sources tell Reuters that the investigation was already underway before Trump's comments. This is possibly a move by China to protect their companies. 
      Source: Reuters

      View full article
  • Recent Status Updates

  • Who's Online (See full list)

    There are no registered users currently online