GM allocates $1 million per fatality in recall fiasco

Posted on 01-07-2014 at 7:48 by sir_smokalot – 14 Comments”

General Motors has a very troubled first half of the year behind us: at the very end called again to 8.5 million cars back, and let the group know $1,000,000 is reserved to have a fatality that the defects is due.

With the latest recall, which will have six models on the Us market between 1997 and 2014 includes, the total number of recalled cars this year, almost 30 million, where problems with the ignition lock, the root cause was. In total, the problems GM this year, 2.5 billion dollar cost, apart from any reputation damage by the bad press.

The above is quite a lot on the plate of the new CEO, Mary Barra, who is determined seems to clean the ship. Probably be no risks taken, and will there come to the surface of issues more quickly to a recall be issued, since the cesspool is now already open. Just by the sour apple back biting and start with a clean slate also seems to us sensible, gentle healers make stinking wounds. Incidentally, pays GM bonuses (incentives) to dealers, who hurry up with replacing the ignition switches are.

The aforementioned compensation of a million is a lower bound, which yesterday by a legal specialist in the service of GM was determined. In total there are now 13 deaths directly to the contactslotproblemen (GM calls it an inadvertent ignition key rotation, explanation HERE) to write, but we also have much larger numbers of reads.

A lot of effect on the share price problems have not. GM closed yesterday on the New York Stock Exchange at $36,30, a decrease of approximately 10% in half a year time. On the internet is The General currently the inevitable scapegoat, but that will be their least concern: