Seeking Alpha

Federal grand jury now investigating GM's use of faulty ignition switches

  • A federal grand jury is now investigating General Motors' (GM) recall of 2.6M small cars tied to faulty ignition switches and has subpoenaed documents relating to the case, WSJ reports.
  • GM already has paid $35M to settle charges it violated federal auto safety regulations, but a criminal investigation by a federal grand jury could pose a much larger threat; in March, Toyota paid $1.2B to settle a Justice Department criminal investigation of its mishandling of safety problems.
  • Meanwhile, documents released yesterday by a House panel show that lead GM engineer Raymond DeGiorgio knew of the switch issues in 2005, and that some employees at supplier Delphi (DLPH) knew DeGiorgio had signed off on an upgrade to the ignition switch in 2006 without recording the change with a new part number.
From other sites
Comments (5)
  • funfun
    , contributor
    Comments (3467) | Send Message
     
    Unfortunately for GM shareholders, the stench of criminality is wafting more pungently from the executive suites and the engineering cubicles of this corrupt motorcar company! The flagrant misconduct of Management has literally killed scores of women and men, and injured hundreds. The potential liability is staggering.

     

    …funfun..
    27 Jun 2014, 08:12 AM Reply Like
  • SkyD
    , contributor
    Comments (30) | Send Message
     
    As Dinah Shore used to sing..."See the U---S---A in your Chevrolet, oops Honda, Toyota, Mazda, Hyundai"
    27 Jun 2014, 08:43 AM Reply Like
  • lemm
    , contributor
    Comments (796) | Send Message
     
    Go drive honda, toyota, mazda,'and hyundai in the country where all the big money goes back to not in the USA.
    27 Jun 2014, 10:41 AM Reply Like
  • mikeRetirement
    , contributor
    Comments (298) | Send Message
     
    SkyD: Until your Honda, Toyota, Mazda, Hyundai deploys it's Takata airbag and takes out an eye with shrapnel!
    27 Jun 2014, 12:07 PM Reply Like
  • Budavar
    , contributor
    Comments (1396) | Send Message
     
    My feelings are for the ordinary Joes whose retirement funds are tied in with the performance or lack of performance (like in case of another bankruptcy,)
    of GM stock.

     

    The GM top bananas have taken care of themselves But what about the hundreds of thousands, or more, who toiled for decades + see their retirement endangered by reckless, some say, even criminal top management.

     

    And more thousands who out of sentimental reasons cling into their GM stock NOW, in the belief GM stock is an investment, not a wild speculation.
    27 Jun 2014, 02:19 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs