Monday, June 16, 2014

GM expands recalls to cover half a million Camaros

The CBS Evening News broadcast that General Motors added “more than half a million Camaros” to the list of its recalled vehicles a few days ago, bringing the total number of recalls this year by GM to 38. CBS News correspondent Jim Axelrod points out, “the recall is for this remote key and lock combination,” which GM says can be switched “out of the run position” by “a driver’s knee.” The broadcast also notes that GM CEO Mary Barra is returning to Washington to appear before Congress “next week,” where Barra “can expect to be grilled for why GM took more than a decade to issue those recall orders on the Cobalt.”

The New York Times reports that this latest recall is connected to “a problem similar to the defect that led the automaker to recall millions of small cars this year.” NHTSA has taken in over 210 complaints related to the Camaros, clarifying in a statement that “the Camaro ignition system meets all G.M. engineering specifications and is unrelated to the ignition system used in Chevrolet Cobalts and other small cars included in the ignition switch recall.” Still, former senior enforcement lawyer for NHTSA Allan Kam comments that “it’s as if they are clearing out a backlog of old safety problems.”

Bloomberg News reports that GM Vice President of Global Safety Jeff Boyer said, “Discovering and acting on this issue quickly is an example of the new norm for product safety at GM.” NHTSA data show that the total number of vehicles recalled by GM in 2014 is higher than the 10.7 million vehicles it recalled in 2004.

The Wall Street Journal reports that GM knows about three Camaro crashes in which the ignition switch defect may have been a factor, with those crashes leading to four injuries.

Reuters points out that NHTSA has yet to post the official recall notice for Camaros, although the agency released some consumer complaints. The article further notes that NHTSA gave the 2012-2014 Camaro a five-star safety rating, which was the best score the car had ever received. Reuters reports in a separate article that NHTSA records show that safety officials were receiving complaints about the Camaros related to the ignition problem as far back as 2009.

The AP reports that “GM also announced three other recalls on Friday,” which pushed the number of vehicles recalled by GM this year “to about 14.4 million in the U.S. and 16.5 million in North America.” The AP also reports in a separate story.

The Los Angeles Times reports that GM is proposing to “fix the problem by changing the Camarao key to a standard design from one in which the key is concealed in the fob and is opened by pushing a button.”

Federal officials begin interviewing GM employees on recalls. Reuters reports that US Attorney Preet Bharara’s office has started the interview process for current and former GM employees, which is for the criminal investigation into GM’s ignition-switch defects.

The Wall Street Journal also reports on the Federal investigation, further noting that certain state attorneys general are also investigating why it took GM so long to recall its defective vehicles. The article also mentions that the Justice Department has faced criticism over the way it charges companies with crimes without also indicting any individuals or executives.

TIME analysis: GM ignition switch failure report highlights problem of “information silos.” In a TIME analytical article, Rana Foroohar says the General Motors report on the ignition switch failures of some models, “which resulted in numerous deaths and millions of recalled vehicles,” also “illuminates a systemic problem in most big corporations as well as governments – insular management or, in the parlance of gurus, information silos.” The report found GM’s departments failed to communicate about the ignition switch issues, a problem reinforced by an unaccountable corporate culture. Foroohar notes the problem of information silos extends across corporate, government, and military organizations. Large, complicated companies are “typically structured so that decision making is separated according to function, geography and product,” and the problem is “becoming only more pressing as the world becomes more interconnected.”


We believe that obtaining legal satisfaction from those who harmed you shouldn't require more hardship. That’s why we do everything we can to streamline the process, and we will file a lawsuit on your behalf if necessary. If you or a loved one has been affected by this recall, and you believe it caused an injury, contact Chhabra & Gibbs today by going to www.cglawms.com or by calling this number: 601-948-8005.

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