GM Plans to Increase Profits
NY Times reports:“Mary T. Barra, G.M.’s chief executive, touted the plan as a fresh start for the nation’s largest automaker, which has been struggling to stabilize operations in the wake of its recall this year of millions of defective small cars tied to at least 23 deaths.
The recall, which began in February, has already cost G.M. about $4 billion, and cast doubt on the quality and safety of its products.
The crisis has also spurred dozens of subsequent recalls of other models and forced Ms. Barra and her management team to confront deep, systemic problems within the company.”
An internal investigation revealed that some G.M. employees had known of problems for a decade with the ignition switches of compact cars that could cause the vehicles to lose power suddenly and deactivate air bags.
The revelations spurred congressional hearings and a $35 million fine by federal regulators for G.M.’s failure to report the safety defect in a timely manner. The company is still under investigation for possible criminal and civil charges by the Justice Department, the Securities and Exchange Commission and 45 state attorneys general.
It also faces a rising tide of private litigation, even as it starts paying out compensation to victims of the faulty switch through a fund run by the lawyer Kenneth R. Feinberg.
Ms. Barra did not mention the recalls and the mounting death toll tied to the defect in her prepared remarks to investors and analysts.” See