April 2, 2014
GM has been found to have known that the cost of repairing the failed systems that caused death and car crashed could have been prevented by a $2.00 repair. GM knew as soon as 2001 but failed to act.
“Since February, GM has recalled 2.6 million cars — mostly Chevrolet Cobalts and Saturn Ions — over the faulty switch, which can cause the engine to cut off in traffic, disabling the power steering, power brakes and air bags and making it difficult to control the vehicle. The automaker said new switches should be available starting April 7,” reports ABC News.
What GM knew was the actuarial tables revealed loss could be balanced against profits. GM is now called to task on Capital Hill to discuss the actions of the auto giant.
“General Motors’ new CEO, Mary Barra, and the head of the nation’s auto safety watchdog testified Tuesday before a House subcommittee, on the defect in small cars that is linked to 13 deaths. Fueling the outrage over the malfunction,Rep. Diana DeGette, D-Colorado said lawmakers obtained documents showing how GM had actually looked at possible fixes for the defect in 2005, but determined it would be too expensive to address. The “unacceptable cost increase,” she said, turned out to be 57 cents apiece,” reports Fox News in “GM slammed at hearing for failing to address 57-cent defect linked to deaths“.
The cost to corporate and public trust has been ripped and will take more than artificial ads to repair.