Report – GM execs hire new firm to review safety information flow image

According to a source close to the matter inside General Motors, the automaker’s directors are taking another step in the internal review of the recall of the defective ignition switch that caused a huge public relations scandal.

The board, according to the report coming from the Wall Street Journal, is aiming to increase its response towards the controversy surrounding the timing of the recall and the fact that although persons inside the company knew as far back as – at least – 2004 about the problem, the recall was only ordered in late February.

“GM had quite a robust system in place for identifying problems, dealing with them and moving them up to appropriate levels,” the source said. “This [ignition switch] problem did not reach the board level. There will be changes. There already are significant changes in the procedures.”

The firm, New York’s Wachtell, Lipton, Rosen & Katz, should now review how the information about potential serious safety hazards traveled to the upper segment of executives, as, according to the person providing the information, the board’s members weren’t announced about the problems encountered in numerous models in relation to the faulty ignition switch.

Via The Wall Street Journal