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"Sworn to tell the truth, how did Mary Barra forget to tell Congress that
-- while she was the GM executive vice president, global product
development, purchasing and supply chain, and nine days before she
became CEO of GM -- GM purchased $3 million dollars of ignition switch
supplies to replace the defective ones -- a cost that was not
budgeted?"
The parts were ordered a day after a committee of three GM
executives met to consider a recall but decided that it didn't have
enough information to make a decision. According to Valukas' report,
the decision was delayed after then-Vice President of Engineering John
Calabrese thought that company investigators didn't know what was
causing air bags not to inflate. Calabrese has since retired.
But Hilliard said the company wouldn't order a half-million parts if it
didn't know the cause of a problem. Hilliard said he is seeking
additional documents to see how high up knowledge of the order went
in the company's hierarchy.
"This email chain creates more questions than it answers. It will be
interesting to learn from the GM documents how high up it went, how
far back it went," he said.
GM would not comment on details of the emails, but said in a
statement that the emails are "further confirmation" that its system
needed to be reformed, which it has done.
Analysis and Coding Hilliard (Attorney) does have a point
here. The company wouldnt order half a million parts if it
didnt know the cause of a problem. Of course, GM would not
comment on these details and further investigation is
required. GM is not showing a good act of reliance or honesty
to their customers. (-)
GeneralMotorsCo.sproblemshavegottensobadthatthisyearithas
recalledmorevehiclesthanitssoldsincethecompanys2009bankruptcy,
raisingquestionsaboutwhetherthecenturyoldcarmakerhasmadeany
progressunderU.S.taxpayersupport.
The30recentsafetyrecalls,includingtheoneannouncedWednesdayfor
218,000oldermodelChevroletsduetoapotentialfirehazard,putsinto
questionhoweffective$11.2billionofpublicrescuefundshavebeenin
gettingGMtoimprovequality.Theanswermaybethepubliclyfunded
rescuehadnothingtodowithautosatall.Wastheconcernoftheauto
bailouttomakethecarsmorequalityortojustkeepemployeesinthe
company?
AnalysisandCodingAngeloYoung,awriterfortheInternational
BusinessTimesasksthequestion,Wastheconcernoftheautobailout
tomakethecarsmorequalityortojustkeeptheemployeesinthe
company?ThisquestionisnowatoughonetoanswerforGeneral
Motors.
SavingjobswasoneofthemainprioritiescarczarStevenRattner,lead
advisortoPresidentBarackObamasautoindustrytaskforcein2009,had
whenhehelpedorchestrateGMsquickreorganization.Questionsabout
qualitycontrol,andGMslonghistoryofpressuringpartsmanufacturersto
lowercosts,whichultimatelyjeopardizedquality,wereconsidered
secondarytopreservingjobsofUnitedAutoWorkermemberswhoworked
forGMandGMsuppliers.
AnalysisandCodingGMplansduringthebailoutshowthatkeeping
employeeswasmoreimportantthanimprovingqualityoftheirvehicles,
whichwasobviouslyneeded.Thesamefederalgovernmentthat
emphasizedtheneedtosaveGMandindustryjobsisonlyrecently
addressingitsfatalqualitycontrolproblem.Asimplegooglesearchalso
willshowwhatconsumersthoughtaboutthequalityofGMvehicles
afterthebailoutandignitionswitchissues,whichwasverylow.()
(WordsofformerCEOofGM,DanAkerson.)
Ithinkweallincludingthenewandtheoldpartofthemanagementteam
didntfullyrealizehowdeepsomeoftheproblemsran,hesaid.
IthinktheyformulatedaplanofrecoveryandIthinkthatssomethingto
beproudof,hesaid.IcantthinkofabetterleaderthanMary.
Barradismissed15GMemployeesoverthedelayedrecall,andfornowhas
setaside$400millionforvictimcompensation.Theautomakerhasrecalled
atotalof28.8millionvehiclesin60campaigns,andhasallotted$2.5billion
fortherecalls.
Thisisamarathon,shesaid.Wearegoingtodotherightthingwhether
itstheeasythingorhardthingtodo,andwereconfidentthatitsgoingto
payoff."
AnalysisandCodingIntheabovesectionsfromDanAkerson,it
showsthatGMisstatingtheyhaveformulatedaplanofrecoveryand
theythinkitissomethingtobeproudof.(GM)Cantthinkofabetter
leaderthanMary.ItalsostatesBarrasetaside400millionforvictim
compensation,showingthatGMandtopexecutivesdocare.Tome,this
seemslikeapleafromGMsayinglookwhatweredoingtofixthisbut
inreality,somethinglikethistakesyearstorecoverfrom.Theyare
takingthecorrectstepstogettowheretheywanttobe.GMdoestruly
believeinCEOMaryBarra.(+)
ConsumerandvictimoftheGMrecall,LauraChristiantalkstoCNNabout
herexperiencewithGeneralMotorsduringtherecall.Her16yearold
daughter,AmberMarieRosewaskilledinlate2005duetoafaultyignition
switchinherChevyColbalt.LauraChristian,hermotherstatesinthe
interview,Whilenothingcanbringmydaughterback,weneedasystem
whereautoexecutivesareaccountabletothepublicandnotjustcorporate
profits.
MaryBarrarespondedlaterinthedaytoLauraChristianwithThisisa
tragicsituationandweunderstandthatlivesareimpacted.Wevemade
substantialchanges,andpeopleknowwearesincere.
AnalysisandCodingVictimLauraChristiansharesherthoughtsthat
shebelievesGMisaselfcentered,corporateculturedcompany.She
believesGMisnotaccountabletothepublic.Barrarespondstothis
sayingGMhasmadesubstantialchangesbutdoesnotincludethese
changes.Barraalsoadds,peopleknowwearesincere.Withthis
statement,sheisinferringthatpeoplethinkGMissincere,which
obviouslytheydonot,refertothecommentsbelowforclarification.()
SummaryofAnalysisandCoding
MaryBarrahasbeenwithGMsince1980,whereshebeganworkingas
aninternat18yearsold.Shethenclimbedthecorporateladdertil
2014,whereshebecamethefirstwomanCEOofalargeautomotive
company.Shepromisedtochangethecarmakersculture,butthengot
slappedwiththelargestrecallinGMhistory.Withnearly1400casesof
deathsandseriousinjuries,MaryBarraandtopGMexecutiveswill
continuetomakeamendstoconsumersworldwide,andtheirqualityof
vehicleswillremainquestioneduntilagoodstreakofproductioncars
aremade.
Sourcing
"AkersonSaysGM'sProblemsWereWorsethanExecs
Thought."AutomotiveNews.2014.Web.13Apr.2016
ValdesPena,Peter."GM:StepstoaRecallNightmare."CNNMoney.Cable
NewsNetwork.Web.13Apr.2016.
Healey,JamesR."6KilledinGMCarswithFaultyIgnitionSwitches."USA
Today.Gannett,14Feb.2014.Web.13Apr.2016.
Young,Angelo."QualityCrisisatGM:TheWorstYearForRecallsSince
2004."InternationalBusinessTimes.21May2014.Web.13Apr.
2016.