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The Switch From Hell - The Fifth Estate - CBC Player

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The Switch From Hell - The Fifth Estate - CBC Player

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GM reported airbag problem in 2007, documents show - Videos - CBS News

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GM reported airbag problem in 2007, documents show - Videos - CBS News

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GM reported airbag problem in 2007, documents show

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New documents released for the first time show General Motors reported to the National Highway Transportation and Safety Administration in 2007 that airbags were not deploying. But NHTSA did not release that information, and GM ordered no recall. Jeff Glor reports.

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GM Recall : The Switch From Hell - the fifth estate - YouTube

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GM Recall : The Switch From Hell - the fifth estate - YouTube

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GM Recall : The Switch From Hell - the fifth estate

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It was a deadly defect in an ignition switch that led to the recall of millions of GM cars like the Cobalt and the Ion and the confirmed deaths of almost 30 drivers, with close to 200 more being investigated.

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Talking Cars with Consumer Reports #28: The GM Recall Mess - YouTube

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Talking Cars with Consumer Reports #28: The GM Recall Mess - YouTube

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Talking Cars with Consumer Reports #28: The GM Recall Mess | Consumer Reports

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The GM ignition switch recall mess has been front page news, including Congressional hearings. Jake Fisher and Tom Mutchler discuss the issues, including cost cutting on Chevrolet Cobalt and its siblings and why safety issues should cause prompt recalls. We also discuss what it will take for GM to repair its image.

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The GM Ignition Switch: What went wrong - YouTube

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The GM Ignition Switch: What went wrong - YouTube

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Beasley Allen lawyer Mike Andrews demonstrates what went wrong. The GM recall now encompasses more than 29 million cars. While these recalls encompass many makes and year models, and address a variety of problems, the largest and most serious group involve a defective GM ignition switch.

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GM ignition switch problem explained in less than 25 seconds - YouTube

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GM ignition switch problem explained in less than 25 seconds - YouTube

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Mary Barra Testifies on Fatal Ignition Switch Recall

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GM ignition switch problem explained in less than 25 seconds

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In this CBS News animation, Jeff Glor explains the ignition switch failure in General Motors automobiles that led to at least 13 deaths.

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GM VP of vehicle safety-employee meeting

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GM VP of vehicle safety-employee meeting

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GM CEO Mary Barra Discusses Valukas Report with Employees

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GM CEO Mary Barra Discusses Valukas Report with Employees

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GM Corporate Newsroom - United States - Videos

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GM CEO Mary Barra Discusses Valukas Report with Employees

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GM comeback hits a speed bump with disappointing earnings - Apr. 23, 2015

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GM comeback hits a speed bump with disappointing earnings - Apr. 23, 2015

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This was supposed to be a strong comeback quarter at General Motors, as it put the recall problems of 2014 behind it and enjoyed solid sales of trucks and SUVs spurred by low gas prices.

But it didn't work out that way.

The nation's largest automaker on Thursday reported a $1.7 billion drop in revenue rather than the increase that had been forecast by Wall Street. While the sales in China and the United States, its two largest markets increased, a slump in the rest of the world left global sales slightly lower.

And while company earnings were up sharply from a year ago, when the cost of recalls wiped out most of its earnings, GM had to take new charges due to the cost of compensating recall victims and problems in Russia. So the $2.1 billion operating profit in the period was seen as a major disappointment.

Shares of GM tumbled 3% in premarket trading following the report.

The company disclosed on Thursday that it raised the amount of money set aside to pay victims of its ignition recall by $150 million. GM had previously expected that to cost $400 million, but the number of fatalities tied to the problems that caused cars to shut off without warning increased to 87 as family members filed for compensation of $1 million or more each. Another 71 fatality cases are under review by Kenneth Feinberg, the attorney overseeing the compensation fund.

Related: Cool cars from New York auto show

The company also took a $366 million charge for problems with sales in Russia. At one point late last year GM and other foreign automakers stopped selling cars in Russia due to a plunge in the value of the ruble. Sales also tumbled in Brazil, its third largest market, due to currency issues that took that country's currency to a 12-year low.

During the quarter the company announced a $5 billion share buyback to hold off a proxy fight with a group of its shareholders. It announced it bought about $400 million of those shares during the quarter.

CNNMoney (New York) First published April 23, 2015: 8:42 AM ET

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But it didn't work out that way. The nation's largest automaker on Thursday reported a $1.7 billion drop in revenue rather than the increase that had been forecast by Wall Street. While the sales in China and the United States, its two largest markets increased, a slump in the rest of the world left global sales slightly lower.

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Part 1 of the "20/20" special "General Motors: From Dream to Downfall."

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The New General Motors Company Launches Today - YouTube

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The New General Motors Company Launches Today - YouTube

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The New General Motors Company Launches Today

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This is the COMPLETE video. General Motors President and CEO Fritz Henderson hosted a news conference this morning to announce that General Motors has emerged from Chapter 11 bankruptcy. The press conference with a Q&A session lasted just under one hour. Get the whole story with tons of editorial at TheAutoChannel.com.

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Fritz Henderson on Restoring Confidence in GM - YouTube

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Fritz Henderson on Restoring Confidence in GM - YouTube

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Fritz Henderson on Restoring Confidence in GM

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New GM CEO Fritz Henderson met today with GM employees here at the RenCen that was also made available to employees around the globe. It was a candid conversation and Fritz didn't mince words about the challenges in front of us -- but he also shared his absolute belief that we can and will get through this and be not only a viable company in the future, but a successful and leading one.

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Fritz Henderson on Culture Change at General Motors - YouTube

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Fritz Henderson on Culture Change at General Motors - YouTube

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New General Motors Company Launches Today

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Fritz Henderson on Culture Change at General Motors

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General Motors President and CEO Fritz Henderson discusses changes within GM's corporate structure

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Why the delay announcing the recall? - Mary Barra, General Motors - YouTube

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Why the delay announcing the recall? - Mary Barra, General Motors - YouTube

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Why the delay announcing the recall? - Mary Barra, General Motors

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Question: Why the delay announcing the recall? General Motors CEO Mary Barra answers customer questions about the ignition switch recall. For more information about this recall, please visit http://www.GMIgnitionUpdate.com.

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Can we be sure this won't happen again? - Mary Barra, General Motors - YouTube

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Can we be sure this won't happen again? - Mary Barra, General Motors - YouTube

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Can we be sure this won't happen again? - Mary Barra, General Motors

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Question: Can we be sure this won't happen again? General Motors CEO Mary Barra answers customer questions about the ignition switch recall. For more information about this recall, please visit http://www.GMIgnitionUpdate.com

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When can I get my car fixed? - Mary Barra, General Motors - YouTube

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When can I get my car fixed? - Mary Barra, General Motors - YouTube

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Federal Investigation Over General Motors Car Recall

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When can I get my car fixed? - Mary Barra, General Motors

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Question: When can I get my car fixed? General Motors CEO Mary Barra answers customer questions about the ignition switch recall. For more information about this recall, please visit http://www.GMIgnitionUpdate.com

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Message to customers - Mary Barra, General Motors - YouTube

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Message to customers - Mary Barra, General Motors - YouTube

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Message to customers - Mary Barra, General Motors

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General Motors CEO Mary Barra responds to customers affected by the ignition switch recall. For more information about this recall, please visit http://www.GMIgnitionUpdate.com

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GM Ignition Switch Recall Update - YouTube

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GM Ignition Switch Recall Update - YouTube

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General Motors CEO Mary Barra will give an update on the ignition switch recall at 9 a.m. EDT on Thursday, June 5. You can watch live here. For more information and ongoing updates on the ignition recall, please visit http://www.GMIgnitionUpdate.com.

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Is my car safe to drive? - Mary Barra, General Motors - YouTube

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Is my car safe to drive? - Mary Barra, General Motors - YouTube

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Is my car safe to drive? - Mary Barra, General Motors

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Question: Is my car safe to drive? General Motors CEO Mary Barra answers customer questions about the ignition switch recall. For more information about this recall, please visit http://www.GMIgnitionUpdate.com

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Testing Shows GM Ignition Recall Vehicles Safe to Drive - YouTube

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Testing Shows GM Ignition Recall Vehicles Safe to Drive - YouTube

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National Highway Traffic Safety Administration

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Testing Shows GM Ignition Recall Vehicles Safe to Drive

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GM conducted more than 80 different tests over extremely challenging road conditions on vehicles subject to the ignition switch recall and found the vehicles are safe to drive if you only use a single key on the key ring and the key fob is removed.

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Mary Barra Update On Recalls - Message to GM Employees

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Mary Barra Update On Recalls - Message to GM Employees

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Mary Barra Update On Recalls - Message to GM Employees

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GM CEO Mary Barra Puts Recalls into Context

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General Motors CEO Mary Barra discusses the company's new approach to safety evaluations and recalls. For more information and ongoing updates on the ignition switch recall, please visit www.GMIgnitionUpdate.com.

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General Motors disputes report of higher death toll linked to faulty ignition switches - WXYZ.com

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General Motors disputes report of higher death toll linked to faulty ignition switches - WXYZ.com

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GM reports higher-than-expected profit despite recall costs | Reuters

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GM reports higher-than-expected profit despite recall costs | Reuters

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DETROIT (Reuters) - General Motors Co () on Wednesday posted fourth-quarter earnings far above analysts' expectations as strong sales of high-margin SUVs and trucks in North America helped offset record recall costs there, and its shares rose 3 percent.

Chief Financial Officer Chuck Stevens told reporters that profitability would improve in all geographic markets in 2015 and that the company was "very much on the path to 10 percent margins (in North America) in 2016."

North American profit margins for 2014 were 6.5 percent. Excluding the additional costs for a record vehicle recall, they would have been 8.9 percent, GM said.

GM said it planned to raise its dividend by 20 percent, a move many shareholders have been pushing the company to do.

Stevens told Reuters that further return of capital to investors could happen later this year, as soon as the company resolves legal issues involving the recall of a defective ignition switch linked to at least 51 deaths.

Excluding special items, the largest U.S. automaker earned $1.19 per share in the quarter, compared with the analysts' average estimate of 83 cents, according to Thomson Reuters I/B/E/S.

Net income rose to $1.1 billion, or 66 cents a share, from $900 million, or 57 cents a share, a year earlier.

Without the recall costs, 2014 operating profit of $6.5 billion would have been $2.8 billion higher and net income per share of $1.65 would have been $1.07 higher, GM said.

Once again, North America accounted for almost all of quarterly earnings, which Stevens credited to increased sales of full-sized SUVs and pickup trucks. Profit on these larger vehicles dwarf those of smaller cars.

Operating profit was $2.2 billion for North America, compared with $2.4 billion companywide.

GM will pay annual bonuses of up to $9,000 to each of its U.S.-based United Auto Workers union employees, up from $7,500 a year ago. The 2014 bonus is the highest ever given by the company.

Fourth-quarter revenue fell to $39.6 billion from $40.5 billion and missed analysts' estimates of $40.12 billion.

GM posted a quarterly operating loss of $400 million in Europe, unchanged from a year earlier. Its annual loss in Europe widened to $1.4 billion from $900 million in 2013.

Stevens affirmed GM's expectations of posting a profit in Europe in 2016.

Shares of GM were up 3 percent at $35 in morning trading.

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GM reports higher-than-expected profit despite recall costs

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DETROIT (Reuters) - General Motors Co () on Wednesday posted fourth-quarter earnings far above analysts' expectations as strong sales of high-margin SUVs and trucks in North America helped offset record recall costs there, and its shares rose 3 percent.

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GM to pay $35 million U.S. fine for delayed response to faulty ignitions | Reuters

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GM to pay $35 million U.S. fine for delayed response to faulty ignitions | Reuters

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WASHINGTON (Reuters) - General Motors Co was slapped on Friday with a $35 million U.S. fine for its delayed response to an ignition switch defect in millions of vehicles, as federal regulators accused a long line of company officials of concealing a problem that is linked to at least 13 deaths.

U.S. Transportation Secretary Anthony Foxx announced the fine, which is the maximum the agency can impose. Other investigations into the automaker's handling of the recall are being conducted by the federal government and could come with more severe punishments.

It was unclear how those additional probes might be influenced by Friday's actions by the Obama administration, especially after Foxx declared: "What GM did was break the law ... They failed to meet their public safety obligations."

The ignition-switch defect was originally noticed by the largest U.S. automaker more than a decade ago. But the first recalls began only in February of this year, despite years of consumer complaints.

Furthermore, the acting chief of the National Highway Traffic Safety Administration (NHTSA), David Friedman, told reporters that GM employees ranging from engineers "all the way up through executives" were aware of the information years before the recall of 2.6 million vehicles.

He did not name the executives, and said there was no information that Chief Executive Officer Mary Barra had earlier knowledge about the problems. Barra took over as CEO in mid-January, becoming the first female to head a major automaker.

Friedman also slammed GM's "corporate philosophy" and pointed to internal training documents that discouraged engineers from using the words "safety" and "defect" when identifying product risks.

CLOSER SCRUTINY

Besides announcing the $35 million fine, officials said that GM will come under closer scrutiny by federal regulators.

The automaker will be required to hold regular meetings with NHTSA to report on efforts to catch safety problems and it also must give the agency monthly reports on any emerging defect issues.

Democratic Senator Richard Blumenthal of Connecticut criticized NHTSA for failing to spot the defect earlier. "There is no question NHTSA bears part of the blame, a large part," he said.

The faulty ignition switches on Chevrolet Cobalts, Saturn Ions and other GM vehicles can cause their engines to stall, which in turn prevents air bags from deploying during crashes. Also, power steering and power brakes do not operate when the ignition switch unexpectedly moves from the "on" position to the "accessory" position.

The fine is far from the end of GM's problems.

Congress, the Department of Justice, the U.S. Securities and Exchange Commission and several states are conducting their own investigations, and GM's internal probe is expected to be completed within the next two weeks. The company is also weighing whether and how to broadly compensate victims.

Carl Tobias, who teaches tort and product liability law at the University of Richmond School of Law, said that while the NHTSA probe is separate from the ongoing criminal investigation, "I think it plays back on the DOJ investigation and I'm sure they will take it into account."

He added that GM's admission that it failed to make a timely report of the ignition defect could increase the company's exposure to civil lawsuits "principally because people could have gotten hurt in the interim when GM wasn't making sufficient and timely reports to NHTSA."

The consumer group Center for Auto Safety called the $35 million fine a "slap on the wrist to a hundred billion dollar corporation." It called on the Justice Department to impose a fine of at least $1 billion on GM.

SHAKEUP

GM in recent months has been trying to demonstrate that it is taking quality issues seriously, shaking up its internal safety team and taking other steps that it says will help protect consumers.

But consumer advocates have accused GM of resisting moves such as urging owners of the recalled cars to park them immediately until they are repaired.

Under the steps announced by the government on Friday, GM also agreed to take part in "unprecedented oversight requirements," including providing full access to its internal investigation and notifying the government of any changes to GM's effort to make repair parts, the government said.

Transportation Secretary Foxx and NHTSA also used Friday's announcement to push Congress to reset the maximum financial penalty to $300 million from $35 million. Prospects for passage of such legislation this year are uncertain.

GM shares closed down slightly more than 1 percent at $34.00 on Friday, recovering somewhat from a drop of 2.5 percent earlier in the session.

In a statement, GM confirmed it would pay the fine.

"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.

Friday's announcement on GM came a day after the automaker announced five separate recalls covering nearly 3 million vehicles worldwide because of tail lamp malfunctions and potential faulty brakes.

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cyclical consumer goods and services (trbc)

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GM to pay $35 million U.S. fine for delayed response to faulty...

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General Motors Co was slapped on Friday with a $35 million U.S. fine for its delayed response to an ignition switch defect in millions of vehicles, as federal regulators accused a long line of company officials of concealing a problem that is linked to at least 13 deaths.

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Customers grow frustrated over GM recall wait times | www.wsbtv.com

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Customers grow frustrated over GM recall wait times | www.wsbtv.com

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Customers grow frustrated over GM recall wait times

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Customers are growing frustrated with the wait times to get parts replaced in millions of recalled GM cars.

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Timeline: What went wrong at GM - Video - Business News

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Timeline: What went wrong at GM - Video - Business News

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Here's a look back at the timeline of engineering problems and accidents surrounding GM's ignition switch. Why didn't the company or NHTSA recall the cars sooner?

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GM avoided defective switch redesign in 2005 to save a dollar each | Reuters

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GM avoided defective switch redesign in 2005 to save a dollar each | Reuters

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DETROIT/WASHINGTON (Reuters) - General Motors Co in 2005 decided not to change an ignition switch eventually linked to the deaths of at least 13 people because it would have added about a dollar to the cost of each car, according to an internal GM document provided to U.S. congressional investigators.

The U.S. House Committee on Energy and Commerce released the documents on Tuesday as lawmakers asked CEO Mary Barra why GM failed to recall 2.6 million cars until more than a decade after it first noticed a switch problem that could cut off engines and disable airbags, power steering and power brakes.

Colorado Congresswoman Diana DeGette cited a 2005 GM document that she said showed a cost of 57 cents per fix.

DeGette did not release the document, and Reuters was unable to get a copy. However, Reuters obtained what appeared to be a separate document, a series of 2005 emails between GM engineers debating whether to make a change to the ignition switch. The change would have cost an extra 90 cents per unit and additional tooling costs of $400,000, one email showed. Those tooling costs typically are amortized over several years.

Barra said she found the concept of turning down the change because of tooling costs "very disturbing. That is not the way we do business in the New GM."

In the email exchange, one of the engineers, John Hendler, said his team was prepared to continue using a switch that was made by Delphi Automotive and approved by GM, even though Delphi told the automaker in early 2002 that the switch did not meet GM's performance specifications.

Hendler said the cars, including the Chevrolet Cobalt and Saturn Ion, which were recalled this year, would continue using the old switch "until the piece cost can be eliminated or significantly reduced," and targeted a new switch for 2009 models. Reuters was unable to contact Hendler.

Another GM executive, Lori Queen, who had responsibility for the development of GM's small cars, responded, "I'm not sure it's ok to wait." She did not explain herself in the email. Queen did not return a call seeking comment. A General Motors spokesman said the company was still investigating the recall and would review all relevant documents.

Representatives repeatedly questioned Barra about GM's weighing of costs even in safety situations. Barra said that was no longer the case, and that the company since its 2009 bankruptcy was changing from a "cost culture" to one focused on customers.

EMPTY BLANKS

In the early 2000s, GM, like the other Detroit automakers was under intense cost pressure, in the face of competition from overseas rivals and a legacy of high labor costs. Those and other financial issues eventually led to GM's 2009 bankruptcy.

GM did change the ignition switch, in 2006, but the process did not comply with the company's own rules, documents and testimony show.

Parts maker Delphi told congressional investigators last week that the redesigned switch on the 2007 models was harder to move out of position, but the force required to turn the switch was "still below GM's original specifications," according to a timeline released by the investigators.

A separate, April 26, 2006, document called a "validation sign-off", authorized changes to the switch, including a new spring, designed to increase the force required to move the switch.

The document showed that the part number did not change, when redesigned, an issue which GM said hampered its own internal investigation.

"It is inconceivable," Barra said, when asked about the design change without a corresponding change in part number. "It is not our process."

Moreover, several fields on the document marked as "required" are left blank or with "N/A", including purchase order number and "validation engineer".

The document has the signature of GM "lead engineer" Ray DeGiorgio, who could not be reached for comment. In a 2013 deposition in a suit against GM, DeGiorgio had said he was unaware of a change in the part.

A retired GM manager familiar with the automaker's engineering and manufacturing procedures said that another manager would have had to sign off on the part, by company policy, given DeGiorgio's relatively low seniority. "So who approved a design change without a part number change?"

Barra confirmed that DeGiorgio is still employed by the company and said she has not yet heard his explanation for signing the 2006 document.

The redesigned ignition switch was installed on 2007 Chevrolet Cobalts and Saturn Ions in late 2006, GM has said.

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auto : truck and motorcycle parts (trbc)

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cyclical consumer goods and services (trbc)

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GM avoided defective switch redesign in 2005 to save a dollar each

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General Motors Co in 2005 decided not to change an ignition switch eventually linked to the deaths of at least 13 people because it would have added about a dollar to the cost of each car, according to an internal GM document provided to U.S. congressional investigators.

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GM recall came years after defect was discovered - Videos - CBS News

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GM recall came years after defect was discovered - Videos - CBS News

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GM recall came years after defect was discovered

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Last week, General Motors said it was recalling more than 700,000 vehicles after six people were killed in accidents related to a problem with the ignition switch. But lawyers for the family of one person killed in a Chevy Cobalt charge GM knew about the defect in 2004. Jeff Glor reports.

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Watchdog: Recall system failed with GM ignition switch defect - CBS News

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Watchdog: Recall system failed with GM ignition switch defect - CBS News

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General Motors acknowledged late Wednesday that it knew about a defective ignition switch back in 2001 but continued to build cars with the part for years.

Now 12 deaths are linked to the defect. GM is recalling more than one and a half million vehicles.

On Capitol Hill on Thursday, the recall was the first order of business in the Senate.

Secretary of Transportation Anthony Foxx was asked why the National Highway Traffic Safety Administration, or NHTSA, investigated problems with some of the GM cars in question, three times, but never demanded a fix.

"In this case, the three crash investigations that were done were inconclusive," Foxx said. "Now as we learn more information, we may learn that our process for reviewing situations such as this need to be improved."

In an updated letter filed with regulators, GM now says it knew about an issue with ignition switches in 2001, in Saturn Ions.

Yet a comparable ignition cylinder was put on Chevy Cobalts and other cars starting in 2004.

A service bulletin was issued to dealers in 2005 saying a heavy key ring, or jarring, can turn the engine off, which disables the airbags. NHTSA had access to that, but no recalls were ordered.

"There's been a complete failure of the recall system both on the part of General Motors and the federal government," said Clarence Ditlow, who runs the consumer watchdog group, the Center for Auto Safety. "And we absolutely have to fix that."

On Thursday, Ditlow sent a letter to NHTSA, and enclosed a chart. It shows the number of deaths, when airbags did not deploy, in Saturn Ions and Chevy Cobalts between 2003 and 2012 - as many as 47 in 2010.

Ditlow said that based on this chart the only way NHTSA could not see a defect trend is if it closed its eyes.

"The airbag is the last line of defense in a crash and it should never fail," he said.

In response NTSA said, "The data available to NHTSA at the time did not contain sufficient evidence of a possible safety defect trend. New information provided by GM has prompted NHTSA to launch an aggressive investigation."

GM so far has acknowledged 12 fatalities linked to the defect, including, we've now learned, a Chevy Cobalt accident which killed a 13-year-old girl and her grandmother in Pennsylvania in 2009. A one-year-old boy was paralyzed from the waist down.

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Watchdog: Recall system failed with GM ignition switch defect

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General Motors acknowledged late Wednesday that it knew about a defective ignition switch back in 2001 but continued to build cars with the part for years. Now 12 deaths are linked to the defect. GM is recalling more than one and a half million vehicles.

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GM Recall : The Switch From Hell - the fifth estate - CBC News

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GM Recall : The Switch From Hell - the fifth estate - CBC News

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GM Recall : The Switch From Hell - Episodes - The Fifth Estate

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It was a deadly defect in an ignition switch that led to the recall of millions of GM cars like the Cobalt and the Ion and the confirmed deaths of almost 30 drivers, with close to 200 more being investigated.

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Recalls May Hurt GM's Reputation, But Drivers Still Buy The Cars - NBC News.com

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Recalls May Hurt GM's Reputation, But Drivers Still Buy The Cars - NBC News.com

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It's already run up a record number of recalls, paid an all-time-high fine and faces possible criminal charges and even bigger penalties from the U.S. Justice Department. And that doesn't even take into account the legal claims that could push to $10 billion or more.

Surprisingly, new car buyers seem to be ignoring General Motors' recall woes. But as the maker's problems mount, industry analysts question just how much of a hit the Detroit maker can take.

"These are unprecedented times," says Mike Rozembajgier, a vice president of Stericycle, a firm specializing in working with manufacturers on recall-related issues.

With four new callbacks this week and four more just days earlier, GM has so far recalled 13.8 million vehicles in the U.S., by its own count, more than during any other time during its more than 100-year history. And it's not even June.

During a meeting with senior GM officials last week, analysts from Barclays were advised that the fast pace of safety-related actions could continue through at least mid-summer. And along with more near-term recalls, GM is taking steps at a senior management level that could lead to longer-term changes in its safety operations.

But the troubled giant isn't alone. On Thursday, Toyota announced three service actions of its own for problems ranging from excess corrosion to faulty brakes and software glitches that could cause airbags in its new Highlander SUV to fail during a crash. Toyota is, in fact, second only to GM in terms of the number of vehicles it has recalled so far this year - and it led the industry during five of the last six years.

But with more than 23 million vehicles now targeted for repairs due to safety-related problems, the industry, as a whole, has seen its reputation tarnished after years of reported improvements in quality and reliability. The odds are that the industry will blow right through the previous record -- 30 million vehicles recalled -- set a decade ago, perhaps by mid-year if the current pace continues.

Clarence Ditlow, the outspoken consumer advocate, and director of the Washington-based Center for Auto Safety, says the sudden burst of activity is an obvious reaction to the events of recent years that have made consumers, regulators and lawmakers less willing to overlook safety problems. Federal safety guidelines have been significantly tightened since the Ford Explorer/Firestone fiasco of a decade back. And the industry faced even tougher scrutiny following Toyota's unintended acceleration scandal in 2009 and 2010.

The Japanese maker was forced to pay a $1.2 billion fine earlier this year and accept three years of probation as a result of delaying its response to safety problems. But it also shelled out billions more in legal fees and verdicts. General Motors is expected to face a similar financial burden after revealing it faces 79 separate claims -- for a total of $10 billion - just for economic losses filed by those who feel the ongoing ignition switch recall has reduced the value of their GM vehicles.

Surprisingly, a study by ALG, the former Automotive Leasing Guide and an arbiter of residual values, predicted that most owners will lose little, if anything, due to the maker's recall woes. And while there is little doubt that GM's image has been damaged, April sales numbers and preliminary May forecasts suggest buyers are still visiting the maker's showrooms.

Why hasn't it been hurt worse? It helps that a number of GM products have been getting rave reviews, the Chevrolet Corvette and Chevy Silverado being named North American Car and Truck of the Year in January, and the influential Consumer Reports declaring the big Chevrolet Impala the best mainstream sedan it ever tested.

Then, says Rozembajgier, there's the issue of "consumer fatigue." The reality is that "across all industries," including autos, food, consumer products and pharmaceutical, among others, he notes "there are anywhere from five to 10 recalls being launched every day." They may make headlines, but then they tend to be forgotten.

Unfortunately, that shows in data the National Highway Traffic Safety Administration has released, showing that 30 percent of vehicle owners never get around to fixing a recalled vehicle. The vehicle data tracking service CarFacx estimated that 3.5 million vehicles were sold last year on the used market with safety problems that weren't repaired, adding that with the average vehicle now on the road for more than 11 years, there are about 36 million that have an unresolved recall problem.

Recent studies, such as the J.D. Power Initial Quality Survey, have shown a steady improvement in vehicle quality, so why are there more recalls now? Industry-watchers point to several possible factors. For one thing, there's the increased scrutiny the industry faces. But the bigger problem, contends Rozembajgier, is that today's cars are just more complicated.

"Every new car has more gadgets and more functionality, and each layer added adds another level of complexity," he contends, adding that we're only likely to see even more recalls in the future.
GM Struggles to Salvage Reputation Amidst Recall Crisis Is GM Reviving the Hated Seat Belt Interlock? Buyers Ponying Up Big Bucks to Lasso a New Ford Mustang

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Recalls May Hurt GM's Reputation, But Drivers Still Buy The Cars

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It's already run up a record number of recalls, paid an all-time-high fine and faces possible criminal charges and even bigger penalties from the U.S. Justice Department. And that doesn't even take into account the legal claims that could push to $10 billion or more.

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GM Recalls Air Bags That Don't deploy When You Have Too Many Keys | GM Recall - Consumer Reports News

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GM Recalls Air Bags That Don't deploy When You Have Too Many Keys | GM Recall - Consumer Reports News

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It's a bad day when you're driving along, and your engine suddenly shuts off. But that's one of the least of the worries for owners of a group of 1.7 million cars in North America that General Motors recalled this week for a faulty ignition switch.

The biggest problem is that the ignition switch can be accidentally turned off in the event of a crash, disabling the air bags. That scenario has led to 12 deaths in 31 accidents. (Read: " GM recall raises concerns about warning systems for auto safety.")

The cars affected in North America include 1.7 million 2005 to 2007 Chevrolet Cobalts (and their equivalents, the Pontiac G5 and Canadian Pontiac Pursuit), 2006-07 Chevrolet HHRs, Pontiac Solstices and Saturn Skys, and the 2003-2007 Saturn Ion.

GM issued a technical service bulletin on the cars in 2005. That should have alerted dealers to fix the problem. But consumers aren't directly informed about technical service bulletins, and when dealers recommend those repairs, consumers are usually asked to pay for them. That differs from a safety recall, which a manufacturer must perform free on every car according to federal law, and must notify all owners directly.

The ignition switch problem is certainly a safety issue. GM says the ignition switch doesn't adhere to the company's torque specifications for the force required to hold it in position. The problem is caused by heavy key rings or by jarring driving on or off-road--such as an accident. "Ensuring our customers' safety is our first order of business," said Alan Batey, president of GM North America. "We are deeply sorry and we are working to address this issue as quickly as we can."

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GM Recalls Air Bags That Don't deploy When You Have Too Many Keys | GM Recall - Consumer Reports News

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It's a bad day when you're driving along, and your engine suddenly shuts off. But that's one of the least of the worries for owners of a group of 1.7 million cars in North America that General Motors recalled this week for a faulty ignition switch.

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The GM recall: Damage control on steroids | Automotive - Home

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The GM recall: Damage control on steroids | Automotive - Home

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DETROIT - Late this afternoon my phone rang while I was writing my story about how General Motors, among other things, appointed a new safety vice president, had new CEO Mary Barra answering questions at a press conference and in the offing had entirely shut me and every other broadcaster in the nation [save one] out of that morning press conference.

On the phone GM had a question for me: A very cordial GM media relations representative wanted to know whether I was going to attend a press briefing in Pontiac tomorrow. After I caught my breath upon realizing what was happening, the answer emerged as an emphatic NO! In an impossibly stunning and embarrassing display of chutzpah GM wanted to know if I would participate in a "warm, fuzzy" press event in the morning.

More from Rod Meloni: The GM recall: Ignition switches, big money

This is a tightly controlled staged press event regarding a product launch. The particulars are hidden somewhere in my overstuffed email box and I hadn't read the finer details to see what they are showing. My deleted items bin is where it will soon wind up. We will not be there! If they were showing off a new Corvette the answer would still be no!

You see, these little events are something we tend to cover when we can as time and camera availability permits because you get to see new product and an occasional executive will sometimes answer a question off topic. On a rare occasion there is a real news nugget to be uncovered. Usually, though, the company gets what it wants: a freebie, some easy and inexpensive publicity. We are less than interested after what happened when it really mattered today.

GM invited only 10 print reporters to the GM Ren Cen headquarters for a press briefing with Mary Barra. Tightly-controlled, hand-picked reporters were there. The usual gang that could be counted on to ask questions that would not shock or otherwise fluster the new CEO. CNBC's Phil LeBeau was invited to listen in on the phone as Mary Barra talked about the biggest crisis at GM since its bankruptcy. It was nut cutting time at the Ren Cen and instead of having the nation's broadcasters, or the local broadcasters who talk with their shareholders and employees every night, they chose to just go with the arm's length print medium.

In thinking back to the GM bankruptcy, CEO Rick Wagoner, as beleaguered as he was, would stand up and answer every question at press conferences that included every manner of reporter and camera. GM was in crisis, it was looking for a handout that it eventually received from the federal government and Wagoner took the public beating he so richly deserved. He was the multi-millionaire executive, his desk was where the buck stopped and he knew he had no choice but to be held accountable. That's how it is supposed to work. It was unpleasant, but Wagoner stood up before shareholders, employees and the nation to answer the toughest questions in the full light of day. No coddling there.

Fast forward five years and the new media handlers around Mary Barra believe she is too delicate a flower for that. In her honeymoon period as the top executive, proud to acknowledge her salary will eclipse $12 million this year, a woman who is highly touted as a GM lifer who has been through and seen a lot is somehow and for inexplicable reasons being held back from the true test of her leadership: true accountability in the sunshine. They and GM's attorneys obviously believe she is either too new or inexperienced to answer questions on camera with all those pesky bright lights. The tightly controlled and amateur looking video of Mary Barra GM put out yesterday appears the most the management and media relations seem to be able to live with. Ladies and gentlemen the building is burning! What in the world is going on here?

Now before I am accused of being petulant and cranky because I was not one of the chosen few consider this: I am YOUR representative inside a news conference. Our cameras are YOUR eyes and our questions are YOUR questions. We exist to represent you in the arena of public truth and accountability. We report what is going on in as many areas as we can for YOU. I wasn't shut out of today's news conference, YOU WERE!

General Motors knew this when it pulled the trigger on this dainty little tea and crumpet session. It's management team didn't care. But rest assured, as tough a grilling as she might have seen today she will get doubly hard in a couple of weeks in Washington, D.C. Congressmen and women, up for re-election, are licking their collective chops at the opportunity to run Mary Barra through the bad PR wringer just to show how tough they are. Will Mary Barra's media relations team spend night and day for the next two weeks preparing her for that? Probably! Would having cameras in today's briefing been a good bit of experience for her to have prior to that coming public brow beating? Yes! Instead, they whiffed. All of this is beyond disappointing and monumentally stunning in that this company just emerged from bankruptcy where the federal government had to step in and prop up and recreate it. American taxpayers lost billions of their tax dollars in the deal. One would think this would have crossed someone's mind in the upper executive suites.

This decision to be small time when it mattered most is no tempest in a tea pot. Now GM is in the position of trying to get out in front of a story that has long since left the barn. It is on its own and creating more controversy than it's solving. If this is the new GM the old one is starting to look positively competent!

And just for emphasis please feel free to have that product launch tomorrow without me or my camera!

Matt Friedman: Why GM only talked to a few today

Copyright 2014 by ClickOnDetroit.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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The GM recall: Damage control on steroids

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DETROIT - Late this afternoon my phone rang while I was writing my story about how General Motors, among other things, appointed a new safety vice president, had new CEO Mary Barra answering questions at a press conference and in the offing had entirely shut me and every other broadcaster in the nation [save one] out of that morning press conference.

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GM CEO faces tough questions from Congress on recall - CBS News

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GM CEO faces tough questions from Congress on recall - CBS News

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WASHINGTON - General Motors' new CEO Mary Barra testified Tuesday before a House committee to answer questions about why GM sold cars with an ignition switch that failed to meet its own specifications, and then failed to heed the recommendations of engineers to fix the part.

Members of Congress asked Barra why it took GM a decade to recall cars with the faulty switches, which the company now links to 13 deaths and dozens of crashes.

In opening comments, House Energy and Commerce Committee Chairman Fred Upton said he was determined to get to the bottom of what went wrong with this recall. "Today's hearing is very personal to me, because I come from Michigan - the auto state."

"We want to know who knew what when, and Miss Barra .. that includes you," said committee vice chairman Marsha Blackburn, R-Tenn.

In her opening statement, Barra said, "Today's GM will do the right thing. That begins with my sincere apologies to everyone who has been affected by this recall, especially the families and friends who lost their lives or were injured. I am deeply sorry."

Barra also said GM has hired noted compensation expert Kenneth Feinberg to evaluate how the company will respond to the families of accident victims whose cars are being recalled because of possible ignition-switch defects. Feinberg helped oversee compensation after the Sept. 11 attacks and the BP oil spill, among other high-profile cases.

After reading her prepared statement, Barra came under immediate attack from lawmakers. Several panel members zeroed in on when GM first discovered problems with its ignition switches. When Barra seemed to duck the question by citing GM's ongoing internal investigation, Rep. Diana DeGette, D-Colo., fired back, "You don't know when GM knew about the defect?"

Some current GM car owners and relatives of those who died in crashes are also in Washington seeking answers. The group held a press conference where they demanded action against GM and stiffer legislation to prevent serious auto vehicle problems.

GM has recalled 2.6 million cars for the faulty switch. That recall prompted the automaker to name a new safety chief and review its recall processes. The company says new switches should be available starting April 7. Concerned owners can ask dealers for a loaner car while waiting for the replacement part.

Rep. Henry Waxman, D-Calif., asked Barra how GM customers can be sure that their vehicles will be safe once new switches are installed. "We will do 100 percent end-of-line testing to make sure the performance, safety and functionality of these switches are safe," Barra said.

Questioning also centered on GM's admission that the faulty ignition switches failed to meet the automaker's design standards.

"Why in the world would a company with the stellar reputation of General Motors purchase a part that did not meet its own specifications," asked Rep. Joseph Barton, R-Texas, who mentioned his training as an industrial engineer.

"I want to know that as much as you do," Barra said. "It's not the way we do business today."

Lawmakers also sought answers from the head of the National Highway Traffic Safety Administration, the nation's auto safety watchdog, about why the agency failed to investigate the GM cars despite numerous complaints from consumers about the cars stalling. Also, one of its top defects investigators proposed an investigation of the GM cars for air bags not deploying in 2007.

Whether members would get the answers they're seeking was unclear. In her remarks, Barra said she doesn't know "why it took years for a safety defect to be announced," but that "we will find out." GM has hired an outside attorney to lead an investigation of the company's safety processes.

The automaker has continued to expand the ignition switch recall, which originally applied to just a few hundred thousand vehicles. On Monday, GM announced another recall of 1.3 million cars because of a steering defect.

"The latest round of recalls demonstrates just how serious we are about the way we want to do things at today's GM," Barra said. "We've identified these issues, and we brought them forward, and we're fixing them."

In his prepared remarks, NHTSA chief David Friedman pointed the finger at GM, saying the automaker had information last decade that could have led to a recall, but only shared it last month.

The victims' families attended the hearing, wearing blue shirts featuring a photo of 16-year-old Amber Marie Rose, who was killed in a 2005 Cobalt crash, and the words "Protect Our Children."

Laura Christian, birth mother of Amber Marie Rose, a teenager who died in a 2005 Maryland crash involving a Chevrolet Cobalt, said about 30 family members met with Barra and two GM attorneys Monday night. She said they got little reaction.

"A lot of, 'I'm so sorry, I'm so sorry,' " Christian said.

GM would not comment on details of the meeting.

Waxman said Tuesday that Democratic committee staff members found 133 warranty claims filed with GM over 10 years detailing customer complaints of sudden engine stalling when they drove over a bump or brushed keys with their knees.

The claims were filed between June 2003 and June 2012.

"GM shouldn't be receiving information over a 10-year period and not taking action to either inform the public or recall the vehicles," Waxman said.

Renee Trautwein, whose daughter Sarah Trautwein died while driving a 2005 Cobalt in June 2009 in South Carolina, said she is "sickened" by revelations that GM had multiple warranty claims about the problem yet did nothing.

"I think they should be taken off the road today," she said of the recalled GM cars.

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GM CEO faces tough questions from Congress on recall

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WASHINGTON - General Motors' new CEO Mary Barra testified Tuesday before a House committee to answer questions about why GM sold cars with an ignition switch that failed to meet its own specifications, and then failed to heed the recommendations of engineers to fix the part.

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Mississippi teen’s fatal crash connected to GM recall | WREG.com

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Mississippi teen’s fatal crash connected to GM recall | WREG.com

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SOUTHAVEN, Miss. -- WREG has uncovered another fatality possibly connected to those faulty General Motors ignition switches.

A Mid-South family turned to the On Your Side Investigators to share their story of loss and, most of all, frustration that recalled cars are still on the road.

Vivacious and full of life is how Tom Taylor and Sherry Thompson describe their daughter Jessica Taylor.

"Very ambitious, very sweet," Jessica's father said.

Her mother added, "You couldn't stop her from doing anything."

Jessica rode her first horse and even competed at the tender age of 2 years old. She later learned and taught gymnastics to young children.

"She cared about people, she had a big heart," Thompson said.

On September 6th, 2009, 19-year-old Jessica and her fiance Andrew were headed home for Labor Day.

Thompson said, "I was all excited waiting on her, and she was supposed to be there, I think 2:15, so at 2:20, I started worrying."

Hours later, Thompson says patrol cars pulled up to her house.

"He said, 'I'm sorry, there's been an accident,'" she recalled.

"I can remember just seeing the blackness, just over and over and over," Ronnie "Andrew" Fortune, Jessica's fiance at the time, said.

Jessica and Andrew were headed south on Interstate 55 near the Tate and Panola County line. Jessica was driving Andrew's 2006 Chevy Cobalt.

According to the accident report, the car left the road and flipped multiple times.

Neither Jessica nor Andrew were wearing seat belts. She was ejected.

Andrew told WREG, "I looked through the vehicle and she wasn't there, and I looked 50, 60, 70 feet away, and that's when I finally found her."

Just like that, Jessica was gone.

Taylor told the On Your Side Investigators, "At the time, I really didn't know what happened, how she lost control."

A former tow truck driver, Taylor walked the scene of the accident searching for clues. He saved car parts and created a memorial that hangs in front of his home, and one at the accident site.

"It changes your life forever, it's like a wound that never heals," Taylor said.

The memorial Taylor placed in the grass off I-55 to mark Jessica's final resting place is long gone, but just this year, new evidence surfaced that took the family back to that spot all over again.

Jessica's mom said, "She's been gone for five years and now I find out it was the car, instead of something she did."

WREG asked, "What were your thoughts after finding out, an ignition switch?"

Thompson said she was disappointed in GM.

"You just always think that their reputation, they're going to take care of people," she said.

Jesssica didn't have a license, but that inexperience that left her family with years of guilt may not have mattered.

The '06 Chevy Cobalt she was driving is one of the models recalled this year by General Motors due to faulty ignition switches.
Reports: History of problems for recalled cars.
Like others associated with the recall, the accident report reveals the airbags didn't deploy.

WREG also obtained pictures police took at the scene, including one where the ignition key clearly looks like it's in the off position.

According to experts, when this happens, the driver loses power steering, and essentially control of the car.

Fortune said, "It ain't my fault, it was not my fiance's fault that they designed a faulty product."

While Taylor says the revelation actually brought him a bit of closure, he "became quite angry with General Motors, even to this day, you know I see cars out on the road."

That's why Taylor contacted the On Your Side Investigators.

WREG was one of the first to report on the slow pace of repairs.

When Taylor spotted a yellow Cobalt in Southaven, he tracked down the owner to ask if it had been fixed.

He told WREG, "Let's get these cars off the road...anything to prevent another tragedy."

After initially not having enough parts to complete repairs, a spokesperson told the On Your Side Investigators that's no longer a problem and GM is "working hard to repair the recalled vehicles as quickly as possible."

The spokesperson also added that GM's efforts to reach customers have been comprehensive, including six separate customer mailings, recall notices in ongoing service reminders, as well as targeted ads on digital and social media.

The company has a dedicated call center, and has asked dealers to offer extended hours and even given away gift cards.

Still, out of the 2.6 million recalled, nearly half remain on the road.

Thompson said, "I don't get to see her walk down the aisle and get married, I don't get to see her have a baby, I don't get to see all of that because of malfunctioning of a vehicle."

Jessica's parents have a simple message for General Motors: "Please do something with these millions of cars out there, pull them in. Save a life, not put somebody else in jeopardy," Taylor said.

WREG asked Jessica's mother, "What will bring you any sort of peace? "

She replied, "When GM gets these cars off the road and nobody else has to die."

Jessica's parents have filed a claim with the fund created to compensate victims and families who lost loved ones. They haven't heard whether it's been approved.

So far, 100 claims have been deemed eligible. General Motors won't say how much it's paid out so far.

The deadline to submit claims is January 31st.
Check for GM recalls here

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Mississippi teen's fatal crash connected to GM recall

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SOUTHAVEN, Miss. -- WREG has uncovered another fatality possibly connected to those faulty General Motors ignition switches. A Mid-South family turned to the On Your Side Investigators to share their story of loss and, most of all, frustration that recalled cars are still on the road.

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Nearly Every GM Model Touched by Recalls This Year - NBC News.com

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Nearly Every GM Model Touched by Recalls This Year - NBC News.com

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General Motors issues three new recalls, cites ignition systems | Reuters

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General Motors issues three new recalls, cites ignition systems | Reuters

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NEW YORK (Reuters) - General Motors Co () began the new year by announcing three new vehicle recalls on Thursday, as the ignition switch crisis continued to dog the automaker after millions of vehicles were recalled in 2014.

No crashes or injuries were reported in the latest round of recalls involving 83,572 sport-utility vehicles and pickup trucks. GM expects that fewer than 500 will be affected by the defect, an ignition lock actuator with an outer diameter that exceeds specifications.

Still, the issue could spook consumers and investors.

Ignition system problems were behind the record number of recalls made in 2014 by GM, which has struggled to rebuild its reputation following its 2009 bankruptcy.

The recalls hit GM's share price, which fell 14.6 percent during 2014, a year in which shares of rival Ford Motor Co () rose about 0.5 percent.

GM recalled more than 2.5 million vehicles in 2014 after accidents that caused more than 40 deaths. The compensation program, which is accepting claims until Jan. 31, has received more than 2,200 claims for injuries and deaths as a result of the issue.

In the primary recall announced on Thursday, the outsized ignition lock actuator can lead to the ignition key getting stuck in the "start" position. If the vehicle is driven that way and experiences a "significant jarring event," the ignition lock cylinder could move into the "accessory" position, affecting engine power, power steering and power braking.

"Also, the timing of the key movement into the accessory position relative to crash sensing could result in the air bags not deploying in certain crashes," company spokesperson Alan Alder said in a statement.

The latest issue was discovered in an internal review following warranty party returns, GM said, and covers certain Chevrolet Silverado light-duty and heavy-duty pickups, as well as Avalanche, Tahoe and Suburban; GMC Sierra light duty and heavy-duty pickups, and Yukon and Yukon XL; Cadillac Escalade, Escalade ESV and Escalade EXT. It concerns models from 2011 and 2012, and 2007-2014 vehicles that have been repaired with defective parts.

Another of the announced recalls concerns a faulty hose clamp in 56 Chevrolet Silverado HD and GMC Sierra HD pickup trucks from the 2015 model year.

The third covers 152 of the 2015 Chevrolet Silverado and GMC 1500 pickup trucks over concerns the rear axle shaft could fracture while the vehicles were being driven.

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auto : truck and motorcycle parts (trbc)

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General Motors issues three new recalls, cites ignition systems

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NEW YORK (Reuters) - General Motors Co () began the new year by announcing three new vehicle recalls on Thursday, as the ignition switch crisis continued to dog the automaker after millions of vehicles were recalled in 2014. No crashes or injuries were reported in the latest round of recalls involving 83,572 sport-utility vehicles and pickup trucks.

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Return to the GM Ignition Switch Recall Site on WordPress

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A Project for ETAP 520: Community, Technology, and Knowledge Building School of Education University at Albany, SUNY Although internal documents revealed that GM knew that faulty ignition switches could impact the safety of its cars as early as 2001, they did not issue a recall until 2014.

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True Defective: GM - The Daily Show - Video Clip | Comedy Central

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True Defective: GM - The Daily Show - Video Clip | Comedy Central

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Trevor Noah and The World's Fakest News Team tackle the biggest stories in news, politics and pop culture.

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Last Week Tonight with John Oliver: GM Ad (HBO) - YouTube

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Last Week Tonight with John Oliver: GM Ad (HBO) - YouTube

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GM Ad: Last Week Tonight with John Oliver (HBO)