Posts Tagged ‘GM recalls’

GM Settling Ignition Switch Class-Action Lawsuit

Pensioners lead effort toward $300 million plan.

by on Nov.17, 2015

General Motors is moving toward a $300 million settlement of a class-action lawsuit about its faulty ignition switches.

General Motors is moving towards a $300 million deal that will end a class-action lawsuit that charges the automaker with concealing the deadly ignition-switch defects, which drove down the value of GM stock.

The New York State Teachers’ Retirement System filed papers in the federal court for the Eastern District of Michigan asking for approval of the $300 million deal, which will end a consolidated class action claiming General Motors Co.’s stock price was inflated during a period when the company concealed ignition-switch defects that the plaintiffs say killed more than 124 motorists.

Subscribe Now!

The $108.2 billion pension fund was approved as lead plaintiff in a class-action lawsuit last year in which the plaintiffs claimed GM committed fraud by failing to disclose the scope of the problem of faulty ignition switches. Costs of the ignition switch scandal has now topped more than $5 billion and continue to grow. (more…)

GM Ignition Switch Deaths Grows by Four

A total of 104 now declared eligible for death benefits.

by on May.19, 2015

Four more families were declared eligible for death benefits from GM's victims benefits fund.

Four more people were added this week to the list of those killed as while driving in General Motors vehicles that crashed as a result of faulty ignition switches that necessitated the recall of nearly 2.6 million cars last year.

That brings the total number to 104, according to the latest update from Kenneth Feinberg, the administrator the $550 million victims fund established by the automaker.

Stay on Top!

Feinberg and his team still have to process another 26 applications for death benefits, the report notes. Additionally, there are 469 applications for injury benefits, including 52 applications for Category One benefits, which cover people who suffered lost limbs, brain damage or pervasive burns in crashes. (more…)

Barra Says Low Gas Prices Won’t Change GM Plans

Automaker continues to learn lessons from recalls.

by on Jan.15, 2015

GM CEO Mary Barra told Keith Crain, Automotive News editor-in-chief, that the automaker's plans haven't changed with the drop in gas prices.

The big drop in oil prices isn’t prompting General Motors to change its plans or strategy, GM Chief Executive Officer Mary Barra said this week.

Barra was asked about the drop in oil and gasoline prices, which are down 55% in the past six months, during a discussion at the Automotive News World Congress with Keith Crain, the publication’s editor-in-chief.

Stay on Top of the News!

“I can tell you this. It hasn’t changed our plans one bit. I think everyone is a little perplexed. I don’t know what it’s going to be,” Barra said in reply to the question by Crain. Barra also admitted the recall crisis made her first years as GM’s top executive very difficult. “We’ve learned a lot,” she said. (more…)

GM’s Barra “More Impatient…More Determined”

CEO lays out strategy for 2015; zero defects, more trucks – but more green cars, as well.

by on Jan.08, 2015

GM CEO Barra, "less patient." than before.

It was a “year of great disappointment, but also a year of great progress,” said General Motors CEO Mary Barra as she summed up her first, tough year on the job and outlined the challenges and goals she is facing for 2015.

The first female CEO of a major global automaker, Barra took on her new role just weeks before GM announced the recall of 2.6 million vehicles equipped with faulty ignition switches now linked to the deaths of at least 42 people. That was clearly apparent in the comments the 53-year-old Barra made, stressing her intent to turn GM into a “zero-defects company.”

Automotive Insight!

On a personal level, the GM CEO said the events of the last year have made her “more impatient and more determined” to deal with a corporate bureaucracy that had, in the past, made it difficult to achieve any real change – and which led to not just the recall crisis of 2014 but the GM bankruptcy five years earlier.


Over 100 File Death Claims With GM Compensation Fund

Number could still rise.

by on Aug.26, 2014

One of the replacement GM ignition switches.

General Motors continues to say it knows of 13 deaths connected to the faulty ignition switches it used in a wide range of vehicles recalled earlier this year, but the special victims’ compensation fund it has set up has already received claims linked to the death of at least 100 people.

While it remains to be seen if the fund will approve payment to all those who’ve filed, it is also expected the number will continue to increase in the weeks and months ahead.

Your Trusted Source for News!

GM has said it anticipates paying out from $400 million to $600 million in connection with the fund, which was set up under intense pressure from safety regulators, federal lawmakers and consumer groups after the maker acknowledged it knew about the ignition switch problem for as much as a decade before ordering the February recall of 2.6 million vehicles.


GM Earnings Crushed by Recall Costs

"Nevertheless, we remained profitable," said CEO Barra.

by on Jul.24, 2014

Earnings on new full-size models, such as this 2015 Chevy Tahoe, should boost GM's earnings going forward, analysts forecast.

The fallout from the ignition switch recall and other safety-related problems cut deeply into General Motors’ profitability for the second quarter, the maker reported.

Net income for the March to June period tumbled to just $200 million, or 11 cents per share, compared to a $1.2 billion net for the second quarter of 2013. The GM balance sheet was hammered during the latest period by one-time costs, most of them related to ongoing recalls, as well as for setting up a new victims’ compensation fund. Earnings before the recall-related charges would have been 58 cents a share.

Beyond the Numbers!

“The ignition switch put tremendous pressure on our earnings,” GM chief executive officer Mary Barray told analysts and reporters. “But nevertheless we remained profitable.”

Barra also said the sweeping recalls, which so far this year cover 29 million units, have not deterred GM from pushing ahead with its effort to improve its competitive position around the world.


GM Rolls Out Another Six Recalls for 717,000 Vehicles

Maker's recall woes drag on.

by on Jul.23, 2014

The Chevy Camaro is one of the many vehicles targeted by the six new GM recalls.

After a brief reprieve – and hints that the worst of its safety problems had ended – General Motors has announced another six recalls collectively covering more than 700,000 cars, trucks and crossovers.

The latest move brings to more than 26 million the total number of vehicles GM has recalled since the beginning of the year. And when added to the service actions announced by competitors as varied as Ford, BMW and Toyota, the industry overall is fast approaching the 45 million mark, well surpassing the previous record, set in 2004, when 34.1 million vehicles were called back for safety problems.

Keeping You in the Know!

GM officials tried to put a positive spin on the latest action, global safety czar Jeff Boyer asserting that this goes to “signify how we’ve enhanced our approach to safety.”

But the seven new recalls also come as something of a setback for a company whose reputation had already taken a hammering during the first half of the year. By late June, GM officials had been dropping strong hints that they had largely addressed all the company’s outstanding safety problems.


GM Issues Stop Sale on Used Cadillac Models

Unusual move reflects slow pace of recall repairs.

by on Jul.21, 2014

The announcement covers Cadillac CTS sedans using key, rather than keyless, ignition systems.

It’s become something of a regular occurrence for manufacturers to issue so-called “stop sales” when they suspect a new model might have a problem that could lead to a recall. Volkswagen recently ordered one for its new Golf and GTI models, and General Motors has issued several this year, including one covering its popular Chevrolet Cruze sedan.

But GM has now issued another, more unusual stop sale, this one telling its dealers to park and sit on some older Cadillac models because of potential ignition switch problems. The order covers Caddy CTS models sold during the 2003 to 2013 model-years, as well as 2004 to 2006 Cadillac SRX sport-utility vehicles. A handful of 2014 Cadillac CTS models were also included.

Breaking News!

The move, however, does not affect vehicles sold by non-GM dealers, whether franchised or independents, so shoppers need be aware that the vehicles have not yet been repaired and could be subject to problems until GM comes up with the appropriate fix.


GM Recall Blitz May Be Winding Down

Biggest issues already dealt with, maker hints.

by on Jul.07, 2014

There are signs that GM CEO Mary Barra may not have to answer more questions about the company's latest recall as GM may finally be done recalling vehicles.

It has so far recalled nearly 26 million vehicles in the U.S. alone, and almost 29 million worldwide – more than any other maker in a single year. But after announcing 54 separate service actions since just the beginning of the year, GM is signaling that its recall blitz finally might be over.

Even then, the maker’s recall headaches are far from over. GM last month announced details of a new victims’ compensation fund to cover the deaths and injuries linked to a faulty ignition switch, a plan that could top $1 billion, according to some analysts. The maker also faces an assortment of legal problems, including a class action lawsuit filed in Seattle that could seek as much as $10 billion in damages. There are separate investigations underway in both houses of Congress, as well as a probe by the Justice Department. And GM has already said it expects to spend about $2.4 billion to handle all those recall during just the first half of 2014.

Subscribe Free!

But the worst, in terms of new recalls could be over, wrote JP Morgan auto analyst Ryan Brinkman, in a report last week, noting that, “GM concluded its enhanced product safety review that has led to a significantly elevated pace of vehicle recalls.” (more…)

Op-Ed: Assessing Detroit’s Brand Addiction

Why the good cop/bad cop game isn’t working anymore.

by on Jun.30, 2014

A 2007 Chevrolet Cobalt, one of the GM vehicles covered by the maker's ignition switch recall.

Does the game of good cop/bad cop still work in Detroit?  What happens when the bad cop (General Motors) keeps making bad decisions, and the good cop (Chevrolet) has no authority and no voice of its own?

In mid-March, the bad cop tried to dig out of its hole as new GM CEO Mary Barra met with reporters to discuss recent product recalls.  “I want to start by saying how sorry personally and how sorry General Motors is for what has happened,” she said in reference to the accidents linked to faulty ignition switches.

Your Opinions Matter!

I think we can all agree with Barra’s framing: this is a GM problem.  Specifically, the inability of the company’s bureaucracy to deal with the ignition switch issue that was uncovered as early as 2001.  One can study many things in this case, from GM’s internal crisis response to product quality to governance issues.  What leapt to mind for me was GM’s devotion to being a “house of brands” that tries to isolate crises to a specific marque, or to the corporate level when the problem is found in multiple brands.


создать интернет магазин