General Motors Company (GM) review does not find further safety issues

Posted Jun 10, 2014

After conducting a thorough review, General Motors Company (NYSE:GM) has not turned up any more serious issues. CEO Mary Barra spoke to reporters at the company’s annual meeting where she said that the personnel changes related to a deadly ignition switch problem are finished. GM forced fired 15 workers last week after an attorney blamed them for failing to act on the issue. Five other employees were also disciplined.

Former U.S. Attorney Anton Valukas issued a report that blamed an inefficient corporate structure and misconduct by some employees that allowed a deadly defect in an ignition switch to go undisclosed for over 10 years. General Motors has recalled 2.6 million vehicles that have faulty switches, which have been blamed for over 50 crashes and 13 deaths. A total of 15.8 million vehicles have been recalled altogether. There will likely be more recalls, but those related to the review will be announced by the end of June.

GM Board Chairman Tim Solso praised Barra by saying that the board is pleased with her work and are confident that she will lead General Motors “to make the necessary changes.” At the meeting, shareholders voted for the nominated slate of 12 directors, including a representative from the United Auto Workers union for the first time. Former UAW Vice President Joe Ashton was elected in the vote.

Two shareholder-sponsored issues failed to pass: one allowed stockholders to vote all of their shares for one director and another would permanently separating the board chairman from the CEO position. 

[Source: NYT]