Scrutiny on GM, NHTSA over ignition switches continues to grow

Transportation Secretary Anthony Foxx has called for a review of whether the National Highway Traffic Safety Administration acted fast enough to address complaints about the defective ignition switches in GM (GM) cars that have been linked to the deaths of at least 12 people.

Any review would add to Congressional investigations into the affair, with the House already inviting acting NHTSA chief David Friedmand to testify before a panel in April.

The regulator has cited a lack of evidence for its inaction, although consumer groups dispute the claim, while service bulletins that GM sent to dealers in 2005 and 2006 mentioned the ignition problem. "They had more than enough information," says Clarence Ditlow of the Center for Auto Safety. "They could have issued a recall as early as 2007."

Meanwhile, Bloomberg reviews the culture of cost-cutting and squeezing suppliers at GM that produced cars with the defective ignition switches. Engineers had created solutions to fix the problem by late 2004, but GM didn't implement them "after consideration of the lead time required, cost, and effectiveness of each of these solutions."

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Comments (3)
  • Miro Kefurt
    , contributor
    Comments (865) | Send Message
    GM made Delphi go bankrupt long before it went bankrupt, and as amazing as it is GM split Delphi from itself since it could not afford to make parts that cheap and stay in business way back - And FORD copied the flawed idea:


    The we do not make cars, we only assemble them transition was completed by GM in
    1994: General Motors forms Automotive Components Group (ACG).
    1995: ACG is renamed Delphi Automotive Systems.
    1999: Delphi Automotive Systems becomes fully independent publicly held corporation.
    2000: Visteon is formed as a parts supplier unit by FORD and becomes an Independent Company
    2005: Delphi discloses irregular accounting practices. A number of executives, including CFO Alan Dawes, resign. Delphi Chairman J.T. Battenberg III retires.
    Delphi files for Chapter 11 bankruptcy protection to reorganize its struggling U.S. operations
    2009: Visteon files for Chapter 11 bankruptcy protection for its U.S. operations on May 28.
    23 Mar 2014, 04:38 AM Reply Like
  • Budavar
    , contributor
    Comments (1409) | Send Message
    Congratulations to Miro for opening the can of worms like a precision surgeon:


    Is this not a classic case of opening a can of worms which I have seen more than once since I first reported to work on Wall Street back in 1954?


    None of them were pleasant, more like devastating.
    As per dictionary definition of opening a can of worms =


    >>> to create a situation that will cause trouble or be unpleasant <<<


    Is it possible under these circumstances to experience defenders of the indefensible say:


    "Already priced into GM stock" ?


    Yes, uttered more than once these past few days...


    When the situation now more or less reflects the action of the doctors who opened up recently my brother = they quietly + quickly sowed him up.
    23 Mar 2014, 09:07 AM Reply Like
  • tjmonie
    , contributor
    Comments (110) | Send Message
    All I know is that tax Money being paid (11mil raise) to GM's new CEO and kept secret with NHTNSA, Transportation Sec., the Unions and this Administration. Again, we all know the MEDIA is so bias when it comes to ASIAN car companies i.e...Toyota paid over a Billion and the media quickly reported on the news as opposed to US GM car....
    23 Mar 2014, 10:31 PM Reply Like
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