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April 11, 2014

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GM places 2 engineers on leave

GENERAL Motors has suspended two engineers with pay in the first disciplinary action linked to its delayed recall of thousands of small cars for a deadly ignition switch problem.

The action came after allegations during congressional hearings last week that at least one engineer tried to cover up the switch problem by fixing it without changing the part number.

GM, in a statement yesterday, said the engineers were placed on leave after a briefing from former US Attorney Anton Valukas, whom GM has hired to figure out why the company was so slow to recall the cars. GM says at least 13 people have been killed in crashes linked to the problem, but family members of those who died say the death toll is much higher.

Company spokesman Greg Martin would not identify the engineers.

“This is an interim step as we seek the truth about what happened,” CEO Mary Barra said in the statement. “It was a difficult decision, but I believe it is best for GM.”

GM is recalling 2.6 million compact cars worldwide, including the Chevrolet Cobalt and Saturn Ion, to replace the switches.

During congressional hearings on the matter last week, Senator Claire McCaskill accused one GM engineer of a coverup. Ray DeGiorgio, the lead switch engineer on the Cobalt, said in a deposition last year for a lawsuit against GM that he never approved a change to the ignition switch. But McCaskill produced a document from GM’s switch supplier that showed DeGiorgio signed off on a replacement, but with the same part number. Failing to change a part number makes the part harder to track.

“What we don’t know yet is how many people knew about the changing of the defective part and hiding that change behind using the same part number,” McCaskill said after the hearing. “It may have been isolated to a small number of engineers that were trying to cover themselves. There was a culture of ... covering up the problem as opposed to being accountable for the mistakes they’ve made.”

During the hearings, Barra called the failure to change the part number “unacceptable.” She said at the time that the company has not fired any employees in connection with the recall. But she said if inappropriate decisions were made, GM will take action, including firing those involved.

Also yesterday, GM unveiled a program, “Speak Up for Safety,” to recognize employees who speak up when they see something that could affect the safety of customers.




 

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