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    Justice Department Finds Criminal Wrongdoing In GM's Ignition Switch Defect


    • General Motors Has Some Criminal Wrongdoings

    Last year, federal prosecutors in Manhattan and the F.B.I. opened an investigation into General Motors into its handling of the ignition switch defect. The investigation focused on whether the automaker failed to comply with federal safety laws stating that an automaker must disclose vehicle defects in a timely fashion and misleading federal regulators on the full extent of problem. The result of their investigation showed that GM did commit criminal wrongdoing.

     

    The New York Times reports investigators from the Justice Department have found criminal wrongdoing in the failure of GM of disclosing a defect tied to at least 104 deaths. People briefed on the inquiry say the two parties are negotiating what misconduct the company would admit to and a settlement. The Times says the amount will eclipse the $1.2 billion paid by Toyota last year for not disclosing its problem with unintended acceleration. Now the settlement will include a so-called 'cooperation credit' as GM helped out in the Justice Department's investigation.

     

    “We are cooperating fully with all requests. We are unable to comment on the status of the investigation, including timing,” said GM in a statement.

     

    Also under investigation are former GM employees, some who were dismissed last year could face criminal charges.

     

    Source: The New York Times

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    This issue has given GM a pretty big black eye, I hope that they can maybe finally get the last bits of this settled and get to work on fixing their image.  It's horrible what has been going on with the Takata stuff (in particular Honda's part in it), but it may help GM by focusing the spotlight elsewhere and helping this to fade from the public consciousness a little bit.

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    Agreed, GM needs to settle this out quickly and move forward with the focus on quality and safety for the customer. Let Takata and the asian auto companies deal with the mess. Yes I know GM has a few that have those airbags, but lucky the main focus is on Honda.

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    Well, it is a bit of PR spin though for Marry Barra to downplay the criminal aspect as worrisome "incompetence and neglect". People died here! And it was good for the many Congressman to call her out for being so reckless in her responses to their questioning. 

     

    Otherwise, there's been safety debacles before with other automakers. Atleast now GM finally has the laser-vision like focus on getting better, not for the sake of beating others, but for the sake of being better than ever before.

     

    It'll be a slow, but calculated march back up with excellent product and a constant attention to reputation to bring back the goliath that was at one point the biggest, best and most profitable automaker ever. And don't expect anyone else to buckle against GM. As hard as GM punches, the rest will come back like bloodthirsty hounds to settle the score. 

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    Well, it is a bit of PR spin though for Marry Barra to downplay the criminal aspect as worrisome "incompetence and neglect". People died here! And it was good for the many Congressman to call her out for being so reckless in her responses to their questioning. 

     

    Otherwise, there's been safety debacles before with other automakers. Atleast now GM finally has the laser-vision like focus on getting better, not for the sake of beating others, but for the sake of being better than ever before.

     

    It'll be a slow, but calculated march back up with excellent product and a constant attention to reputation to bring back the goliath that was at one point the biggest, best and most profitable automaker ever. And don't expect anyone else to buckle against GM. As hard as GM punches, the rest will come back like bloodthirsty hounds to settle the score. 

    I agree, their renewed focus will be good not only for them, but for the industry as a whole.  They spent a long time as THE leader in sales with everyone trying to catch up, and it's everyone trying to catch up that leads to people innovating and trying to do better.

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    yeah...well...it WAS of criminal nature...

     

    But Im wonderin' is anybody gonna go to the slammer for this?

     

    In 2015 America...scratch that...because its not only corporate America that this disease is apparent...so...in 2015 Earth...are corporate weasels ever gonna be held accountable for their actions?

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    Ouch. GM's name is gonna be pulled through the mud for this.

     

    Wonder if there will be any prosocutions, and if so how long will the cases take? A couple years at the very least I'm betting.

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    The real deal is that this is not a case of the car ignition slipping into AUX mode and disabling the airbags and the driver not being able to restart the car. The deal is that the ignition would slip into AUX mode once an accident head-on occurred. In fact the only time I could see someone not being able to coast out of multiple lanes is if they are in stop and go traffic, never even reaching a speed that would cause them a serious collision in the first place. "Flashers on, Hold up traffic." What I can't figure out is why the hell we are so dependendt on these thing to save our lives as opposed to simply driving proper in the first place. The first one was a Cobalt driven by a drunk girl doing 69 miles an hour in a 25 m.p.h. zone. She died. But I have to ask, in that situation was it car's airbags at fault or the girl being drunk and doing almost 3X the speed limit?

     
    Let's delve deeper. Since GM is found liable, the car czars going over GM, supposedly with a fine tooth comb... since responsibility still remains with the Government that owned a controlling stake in the company for 5 years... shouldn't the Government be held so as well? N.H.T.S.A, after two Cobalt crashes, investigated the cause, each time raising the possibility of a defect. They met with GM but never opened a broader investigation into whether the car was defective. Never forcing GM to actually do a Recall. 
     
     

     

     

     


    Ouch. GM's name is gonna be pulled through the mud for this.

     

    Wonder if there will be any prosocutions, and if so how long will the cases take? A couple years at the very least I'm betting.

     

     

     

    Ouch???     Wings???   :yikes: 


    yeah...well...it WAS of criminal nature...

     

    But Im wonderin' is anybody gonna go to the slammer for this?

     

    In 2015 America...scratch that...because its not only corporate America that this disease is apparent...so...in 2015 Earth...are corporate weasels ever gonna be held accountable for their actions?

     

     

     

    Personally I'm sick of the drama.. but we all kno that the some won't let to go away. You can bet the press is perpetuating the issue. This country absolutely hates it's corporations, while very often at the same time loving foreign ones. Seriously. If the Revolutionary war were fought today, you can bet good money we'd be sending tax dollars to the Queen

    Edited by Cmicasa the Great
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    despite all the bad from GM here, make no mistake, this is another instance of the Dept Of Justice looking for any reason to swing a bigger axe.  This has probably been enflamed as much to make a federal agency look valuable as much as anything.

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    The real deal is that this is not a case of the car ignition slipping into AUX mode and disabling the airbags and the driver not being able to restart the car. The deal is that the ignition would slip into AUX mode once an accident head-on occurred. In fact the only time I could see someone not being able to coast out of multiple lanes is if they are in stop and go traffic, never even reaching a speed that would cause them a serious collision in the first place. "Flashers on, Hold up traffic." What I can't figure out is why the hell we are so dependendt on these thing to save our lives as opposed to simply driving proper in the first place. The first one was a Cobalt driven by a drunk girl doing 69 miles an hour in a 25 m.p.h. zone. She died. But I have to ask, in that situation was it car's airbags at fault or the girl being drunk and doing almost 3X the speed limit?

     
    Let's delve deeper. Since GM is found liable, the car czars going over GM, supposedly with a fine tooth comb... since responsibility still remains with the Government that owned a controlling stake in the company for 5 years... shouldn't the Government be held so as well? N.H.T.S.A, after two Cobalt crashes, investigated the cause, each time raising the possibility of a defect. They met with GM but never opened a broader investigation into whether the car was defective. Never forcing GM to actually do a Recall. 
     
     

     

     

     

    Ouch. GM's name is gonna be pulled through the mud for this.

     

    Wonder if there will be any prosocutions, and if so how long will the cases take? A couple years at the very least I'm betting.

     

     

     

    Ouch???     Wings???   :yikes: 

    yeah...well...it WAS of criminal nature...

     

    But Im wonderin' is anybody gonna go to the slammer for this?

     

    In 2015 America...scratch that...because its not only corporate America that this disease is apparent...so...in 2015 Earth...are corporate weasels ever gonna be held accountable for their actions?

     

     

     

    Personally I'm sick of the drama.. but we all kno that the some won't let to go away. You can bet the press is perpetuating the issue. This country absolutely hates it's corporations, while very often at the same time loving foreign ones. Seriously. If the Revolutionary war were fought today, you can bet good money we'd be sending tax dollars to the Queen

     

    Terrible post. You of all people, why am I not surprised? 

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    Ouch. GM's name is gonna be pulled through the mud for this.

     

    Wonder if there will be any prosocutions, and if so how long will the cases take? A couple years at the very least I'm betting.

     

     

     

    Ouch???     Wings???   :yikes: 

    New profile, few downer anti-GM posts, a guy supposedly from England who heard a Ford UTE the other day...

    Ya. Fits the profile. Ah well.

    yeah...well...it WAS of criminal nature...

     

    But Im wonderin' is anybody gonna go to the slammer for this?

     

    In 2015 America...scratch that...because its not only corporate America that this disease is apparent...so...in 2015 Earth...are corporate weasels ever gonna be held accountable for their actions?

     

     

     

    Personally I'm sick of the drama.. but we all kno that the some won't let to go away. You can bet the press is perpetuating the issue. This country absolutely hates it's corporations, while very often at the same time loving foreign ones. Seriously. If the Revolutionary war were fought today, you can bet good money we'd be sending tax dollars to the Queen

    The courts are well within their right to press forward with the issue. But yes, there has to be some context to the investigation-it CANNOT become a witch-hunt. The Toyota and Takata messes need to be considered in any similar action versus GM.

    Media bias against GM?... Nah-media bias against anything the media doesn't like. Don Henley didn't write "Dirty Laundry" for nothing.

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    Im sick of all this too...

    However, GM tried to cover it up...and THAT is what Im concerned about.

     

    Not the fact that they tried to save a few pennies on a part that they made another company re-engineer.

    That company also kept things under wraps...as to not lose the contract.

     

    My comment was directed towards the HUMAN element...not the corporation...not GM...but the people that were in charge of those decisions that were criminal.

    Delphi...the head honcho of that contract...if I remember correctly...his engineers hinted of a possible failure...yet the head QC guy went ahead...

     

     

    My dad...worked at Canadair (Bombardier Aerospace) for 40 years.

    The last 15 years or so...he was the head manager of Quality Control.

    Before he released an airplane part or the entire aircraft...depending on the contract he was in charge of, his inspectors would inspect...and he would scrutinize EVERYTHING...and if it passed....he then proceeded to sign off the part or airplane...his signature was the last signature before the client received...

     

    In one case...a Boeing 767 pressure dome was rushed by production because Canadair was tight on its deadline...the head manager of production and the general manager of the contract pressured my dad to just release the part...my dad REFUSED....his boss...and their was only 2 bosses above my dad...his direct boss....in charge of that contract and the Canadair President...well...he told off his direct boss and his boss threatened my dad that he would be fired...for doing his job...well my dad called that bluff, he said that he will not only hire a lawyer...but will go DIRECTLY to Boeing and tell them waz up...and my dad did EXACTLY that...my dad had the cojones to STAND UP to that corporate culture of just putting human beings in danger...

     

    Boeing flew my dad to Seattle to straighten matters up...

    Result...the head production guy got fired...my dad's direct boss DEMOTED...

     

    My dad...well...he continued on...

    My dad was head QC guy with these contracts...

     

    Boeing 767 pressure dome

    McDonnel Douglas F-18 barrel nose

    RCAF CF-18 Hornet  maintenance program

    Canadair Challenger....yup the whole aircraft before being delivered to rich assed customer...

    Canadair CL-215/CL415 water bomber...yup the whole aircraft...

     

    When my dad's time to retire came up...Canadair wanted my dad to be in charge of the Regional Jet program in Wichita,Kansas... my dad kindly declined...he was 65 and was worn out by the constant corner cutting by production and trying to weasel parts that barely make tolerances...and these are aircraft...tolerances in airplanes HAVE to be respected...because disaster strikes quickly up in the air...

     

    And that is what the corporate culture is lacking today...

    People that have morals.

    People that actually care about the consequences....and are not just about missing deadlines and cost cutting measures...

     

    While El K...I understand the cost cutting measures that GM was forced to have because of what happened in the 1970s...because the Detroit 3 was FORCED to comply with the foreign makes PUSHING themselves in the North American market....because our governments fell head over heels with the foreign makes...

     

    Yeah I know...the Detroit 3 made crappy cars....

    Its not ONLY that...

    Because the foreign makes ALSO made crappy cars in THAT SAME TIME frame...

     

    Not to stray too far apart from this...

     

    Point that I want to make...

    Some corporate weasels dont have the cojones to stand up for what is right...

    Some corporate weasels will sell their moms...and themselves...for the all mighty dollar...

     

    This mentality WILL ALWAYS result in disasters and/or fake bankruptcies that steal money from regular folk...

    And our governments ALLOW for this to happen...

    And...no punishment...

     

    Sure...Bernie Madoff and Conrad Black are in jail...how many others deserve not only jail time...but Mr. Executioner as well?

     

    This is not a rant against GM...or Ford..or even Honda because I mentioned foreign makes...

    This rant is against all that is evil within  a criminal corporate culture...

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    You may add that the girl did not have a seat belt on.
     

    This is the true issue in many of the cases. I do not forgive those who were involved for the cheap part but so many of those who died cause the accident they died in and in many cases did not use their seat belts that may very well have kept them alive regardless of any other factor.

     

    I studied the first 13 deaths and almost  all had contributing circumstances that contributed directly to their living and dying. Sorry to those who like to blame big business for everything but it is time people take responsibility also for their actions and lawyers to stop playing corporate blackmail with large companies. The only people hurt by these lawyers are use the consumers as we pay for these settlement that the family gets often less than 50% of and the lawyers love to settle out of court as they often would lose but with the expense of dragging a company being so high in in cost and PR they find it easier to pay out the blackmail.

     

    The bottom line is here Air Bags are a supplemental restrain that need to be used in conjunction with a seat belt. Fail to use the belt often they are killed or injured just buy the bag. Having eaten one myself I know the damage that can happen just from the bag alone and if unrestrained they can easily snap a neck.

     

    On GM's part it is very easy to believe this never was know buy many inside. GM's culture was in pretty bad shape and communication was extremely poor. GM could not even communicate internally well enough to improve their cars and save money on duplication of parts.

    The 08 Malibu was the first car to get world class panel gaps and why? Because the metal shop was never told to do better and could not act on their own to do so. It took Bob Lutz to tell them to fix it and never wait again to be told.

    GM was also fingered as the best company to sell parts too by a bearing rep. He said he could sell the same bearing to GM 5 different times under 5 different numbers and at 5 different prices because they had no clue what they were buying.

     

    Yes things were that bad and for someone who made a mistake to create a bad part could have easily hid it from everyone but a few as most of the time in this era the left hand knew not what the right hand was doing.

     

    GM will get a big fine and this will be put to bed. This was not the first time a company had an issue like this and it is not the last. I expect to the new air bag issue to catch the media attention and get the if it bleeds it leads treatment.

    Even with the odds over 5 million to one that it will happen to you. Lightening Is only 250.000 to one that you will get struck.

     

    People die everyday and from many things. and so often the lawyers just eat it up and cost us millions yearly in lawsuits that really do not mean jack to most of us but we end up paying for,

    I just wish the bias media would have covered this more evenly and not yielded to the groups the lawyers pay to get the extra media attention.

     

    The book What did Jesus Drive is a very good book covering issues at Nissan, Ford and Chrysler and how the lawyers dig in their claws. I recommend the read as it really spells out the side you never hear.

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    Thing is... Conrad Black is no longer in jail. Whatever you may think of the man, most of his convictions were overturned, in no small part because they were originally laid in Chicago, which is to unbiased trials what McDonald's is to fine cuisine. And Black, for all his shortcomings, does have a way with the pen that I admire.

    Anyway, digression over.

    Edited by El Kabong
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    You may add that the girl did not have a seat belt on.

     

    This is the true issue in many of the cases. I do not forgive those who were involved for the cheap part but so many of those who died cause the accident they died in and in many cases did not use their seat belts that may very well have kept them alive regardless of any other factor.

     

    I studied the first 13 deaths and almost  all had contributing circumstances that contributed directly to their living and dying. Sorry to those who like to blame big business for everything but it is time people take responsibility also for their actions and lawyers to stop playing corporate blackmail with large companies. The only people hurt by these lawyers are use the consumers as we pay for these settlement that the family gets often less than 50% of and the lawyers love to settle out of court as they often would lose but with the expense of dragging a company being so high in in cost and PR they find it easier to pay out the blackmail.

     

    The bottom line is here Air Bags are a supplemental restrain that need to be used in conjunction with a seat belt. Fail to use the belt often they are killed or injured just buy the bag. Having eaten one myself I know the damage that can happen just from the bag alone and if unrestrained they can easily snap a neck.

     

    On GM's part it is very easy to believe this never was know buy many inside. GM's culture was in pretty bad shape and communication was extremely poor. GM could not even communicate internally well enough to improve their cars and save money on duplication of parts.

    The 08 Malibu was the first car to get world class panel gaps and why? Because the metal shop was never told to do better and could not act on their own to do so. It took Bob Lutz to tell them to fix it and never wait again to be told.

    GM was also fingered as the best company to sell parts too by a bearing rep. He said he could sell the same bearing to GM 5 different times under 5 different numbers and at 5 different prices because they had no clue what they were buying.

     

    Yes things were that bad and for someone who made a mistake to create a bad part could have easily hid it from everyone but a few as most of the time in this era the left hand knew not what the right hand was doing.

     

    GM will get a big fine and this will be put to bed. This was not the first time a company had an issue like this and it is not the last. I expect to the new air bag issue to catch the media attention and get the if it bleeds it leads treatment.

    Even with the odds over 5 million to one that it will happen to you. Lightening Is only 250.000 to one that you will get struck.

     

    People die everyday and from many things. and so often the lawyers just eat it up and cost us millions yearly in lawsuits that really do not mean jack to most of us but we end up paying for,

    I just wish the bias media would have covered this more evenly and not yielded to the groups the lawyers pay to get the extra media attention.

     

    The book What did Jesus Drive is a very good book covering issues at Nissan, Ford and Chrysler and how the lawyers dig in their claws. I recommend the read as it really spells out the side you never hear.

     

     

    Yeah, most of it was BS....

     

    Kinda like McDonald's, anytime you can take a negative shot to the product...no matter what.....

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    You do have criminal corporate people but what gets left out of the discussion too often is the criminal legal lobby and lawyers.

    These folks take advantage of our system to enrich themselves on our dime. They go after companies so often on matters that are not fully stated or true. They prey on people who are willing to accept self responsibility and they give them a percentage as the legal rep takes the majority in corporate blackmail.

     

    We need tort reform in this country but we will never see it as the legal lobby plays a strong hand here as most people in DC are lawyers.

     

    While GM did screw up with bad ignitions there was intent to kill anyone. In most peoples minds a bad ignition ends up with a stalled car and you just restart it. Few would never consider an air bag not going off. Nor would most consider that they would be held responsible if people did not use their belts and were incapacitated in some way.

     

    I think when this turned bad the people who were the ones seen as responsible did cover themselves up and if they did it would have been easy to hide as communication inside GM was horrible. Lets face it just look at how many times GM shot themselves in the foot with poor communication and inter division fighting.

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    So wait... Wall Street can defraud people out of billions, if not trillions of dollars, no one goes to jail and they all get bonuses....... but then this?

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    Point that I want to make...

    Some corporate weasels dont have the cojones to stand up for what is right...

    Some corporate weasels will sell their moms...and themselves...for the all mighty dollar...

     

    This mentality WILL ALWAYS result in disasters and/or fake bankruptcies that steal money from regular folk...

    And our governments ALLOW for this to happen...

    And...no punishment...

     

    Yep ... the government allows a lot to happen that it claims to hold those responsible accountable.  False advertising being yet another example.

     

     

    Cort :) www.oldcarsstronghearts.com

    1979 & 1989 Caprice Classics | pigValve, paceMaker, cowValve
    "Something's wrong in the world today" __ Aerosmith __ 'Living On The Edge'
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    Point that I want to make...

    Some corporate weasels dont have the cojones to stand up for what is right...

    Some corporate weasels will sell their moms...and themselves...for the all mighty dollar...

     

    This mentality WILL ALWAYS result in disasters and/or fake bankruptcies that steal money from regular folk...

    And our governments ALLOW for this to happen...

    And...no punishment...

     

    Yep ... the government allows a lot to happen that it claims to hold those responsible accountable.  False advertising being yet another example.

     

     

    Cort :) www.oldcarsstronghearts.com

    1979 & 1989 Caprice Classics | pigValve, paceMaker, cowValve
    "Something's wrong in the world today" __ Aerosmith __ 'Living On The Edge'

     

    Many companies across many markets ride a very fine line with advertising, keeping things just on the legal side of true, while not being remotely realistic or honest.  Yet people will fall for it every time.  This is why I always found it funny when our instructors said that Americans one of the reasons we weren't allowed to run psyop on our own people was that it just wouldn't work.  Corporations run psyop on the American public every day and it works like a charm.

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    Just look at any Presidential, Senate and Congressional campaign and you will see plenty of false advertising. They don't even ride a fine line.

    Edited by hyperv6
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      Source: National Highway Traffic Safety Administration (Report in PDF), Tesla
    • 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
      The Takata Airbag recall now stands as the largest vehicle recall ever due to how many vehicles around the world use them. In the U.S. alone, 19 auto manufacturers have recalled 49 million vehicles with the airbags that can shoot out shrapnel in the event of an accident. 11 deaths and 184 injuries in the U.S. have been linked to these airbags. Due to this, Takata has been facing numerous lawsuits and investigations. A new report says that Takata is close to closing one of those investigations.
      The Wall Street Journal has learned from sources that Takata is in negotiations with the U.S. Justice Department about a possible settlement. The deal would see the Japanese supplier pleading guilty to criminal misconduct and paying a fine ranging from hundred of millions to $1 billion. The settlement could be finalized early next year, but sources say the timing could slip.
      Reaching an agreement with the Justice Department would put Takata in better standing when it comes to another supplier (possibly Autoliv) taking over the company. It would also close one door in a massive scandal.
      Source: Wall Street Journal (Subscription Required)

      View full article
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