June 5, 2014
Investigation finds “a pattern of incompetence and neglect” at General Motors, compensation program announced
After an internal investigation at General Motors into the events surrounding a botched ignition switch recall resulting in the deaths of between 13 and 73 people, 15 employees have been released from the company and another five have been disciplined.
This comes in the wake of an internal report compiled by former U.S. Attorney Anton Valukas, who was previously appointed the bankruptcy examiner of Lehman Brothers, which found “a pattern of incompetence and neglect” by those involved.
General Motors CEO Mary Barra described the report as “extremely thorough, brutally tough, and deeply troubling,” while vowing to take action on all recommendations.
“Overall the report found that, from start to finish, the Cobalt saga was riddled with failures which led to tragic results for many.”
The report comes after a three-month investigation into the failures surrounding repeated delays of the ignition switch recall. GM will release the report to NHTSA today, who will in turn make it public.
Of those let go from the company, one is a senior lawyer and another is a vice president. Also let go was Ray DeGiorgio, previously suspended in connection with the recall.
While the report “reveals no conspiracy or cover-up” of the ignition switch recall, General Motors has announced compensation programs in the United States and Canada.
“On behalf of the employees of GM of Canada, we express our deepest sympathies to the victims and their families,” said Kevin Williams, president and managing director, GM Canada.
“By adopting the compensation program in Canada, we’re ensuring that Canadians are treated with compassion, decency and fairness.”
Covering some 1.6 million 2003-2007 models and another 1 million 2008-2011 vehicles repaired with faulty switches, the program will begin to accept claims on August 1st, 2014. Full compensation details will be developed “in the coming weeks” GM Canada stated in a release this morning.