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GM CEO Announces More Recalls May Be Possible

Jun 27, 2014

General Motors’ (GM) Chief Executive Mary Barra just announced that additional recalls may be possible; this following a series of recalls involving 20 million cars, to date.

Barra discussed the potential for future recalls in an interview with NBC this week, one day after GM issued its most recent recall, which involved 33,000 Chevrolet Cruze sedans over possibly defective air bags manufactured by Japanese supplier, Takata, according to Reuters. When asked if GM would be issuing any future recalls, Barra responded, "It's possible."

Barra, who was interviewed on NBC’s “Today” show, added, "We're going to continue to look at the data that we get, and we're going to take the action that we need…. If we find an issue, we're going to deal with it," according to Reuters.

Earlier this month, GM announced a recall of 3.16 million midsize and large cars. The recall was implemented to modify ignition keys and follows a prior recall of 2.19 million United States’ small cars earlier this year. The previously recalled vehicles’ defect has been associated with 13 deaths and 54 accidents. The more recent recall has been associated with eight accidents and six injuries, according to USA Today.

GM is working on completing a compensation program for victims of the recall associated with 13 fatalities. The program is meant to resolve injury and death cases that may be beyond the known deaths, Reuters wrote. "We want every single person who either lost a loved one or has a serious physical injury to be a part of that program," Barra told NBC.

When Barra was asked if GM had fired all of the staff it planned on terminating in connection to the Cobalt recall and defective switches, Barra answered, "Yes, I believe we have." She added, "We've addressed the issue," Reuters reported.

GM has been the focus of increasing controversy and has been criticized by safety and consumer advocates for the way in which the car maker has handled the matter. In fact, Congress, the U.S. Securities and Exchange Commission (SEC), and the U.S. Department of Justice, as well as a number of state governments and even GM, have initiated probes into how the car maker handled the faulty switches, an issue that GM engineers have allegedly been aware of since 2001.

Barra was scheduled to testify at a House subcommittee concerning the original initial switch defect. Regarding one of the recent recalls, Energy and Commerce Committee Chairman Fred Upton, (Republican-Michigan) said, "This latest recall raises even more questions about just how pervasive safety problems are at GM," according to USA Today. "Has the company identified all potential problems? And has GM taken all necessary actions to fix the issues? We look to get answers directly from GM CEO Mary Barra and internal investigator Anton Valukas," Upton added.

According to USA Today, the Valukas report discusses a "pattern of incompetence" at GM that led Barra to fire 15 GM lawyers and engineers. Barra described Valukas’ report as being "brutally tough and deeply troubling."

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