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GM accused by US Senator of covering up recalls

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GM accused by US Senator of covering up recalls

The US Senate hearing that started yesterday was from the very beginning very aggressive towards General Motors, with the company named one that developed “a culture of cover-up.”

The Senate hearing is in relation to the ignition switch recall that prompted GM to call back in February around 1.3 million cars, after accidents related to it had at least 13 casualties. Later developments revealed that GM failed for more than a decade to notify the public about the defective part and moved the total recall tally to 2.6 million cars.

“It might have been the Old GM that started sweeping this defect under the rug 10 years ago. Even under the New GM banner, the company waited nine months to take action after being confronted with specific evidence of this egregious violation of public trust,” said Democratic Senator Claire McCaskill.

McCaskill, who heads the Senate subcommittee on consumer protection and product safety told CEO Mary Barra she’s not so convinced that its company has actually started to come clean now – as Barra said earlier on Tuesday to a House panel.

General Motors, which just recently managed to redeem the last shares owned by the US government, has now come under scrutiny by House and Senate committees for the cars that have faulty ignition switches – which could make the car accidentally turn the engine off and along with it critical safety systems.

Via Reuters

by Aurel Niculescu (my Google+) - Thursday, April 3rd, 2014 - filed under General Motors, Industry, News. Image credit: .
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