Auto task force member: didn't know about GM's faulty ignition switch

WASHINGTON Wed May 21, 2014 12:15pm EDT

WASHINGTON May 21 (Reuters) - A former member of the U.S. auto task force that helped restructure General Motors Co in 2009 during its bankruptcy said he had no idea about the defective ignition switches linked to at least 13 deaths.

Harry Wilson, speaking at a conference in Washington, said the task force on which he served never met with lower level GM engineers and the crisis brought on by the faulty switch showed the cultural problems at the largest U.S. automaker.

"We didn't know about anything like this," he said at an event hosted by the Brooking Institution of the defective part. "It seems to have been basically stuck at the mid-level of the engineering department and not risen above that."

GM last week was fined a record $35 million by the U.S. National Highway Traffic Safety Administration for its delayed response on the faulty switch, which engineers first discovered in 2001. The company still faces probes by the U.S. Department of Justice, Congress, the Securities and Exchange Commission and several states about how it handled the issue. GM also expects to complete an internal probe within two weeks.

Wilson said the defective ignition switch and resulting recall of 2.6 million vehicles globally showed that decisions at the company were previously driven by the company's weak financial condition as well as various departments, like legal and engineering, not communicating well with each other.

"It is sadly emblematic of the cultural problems at the company," he said of GM. "They would do anything to save a penny, including some really bad decisions both economically and morally.

"From what I can tell, as evidenced by the fact that the recall didn't become public until very recently, that still persists, and that is something that has been a problem at General Motors for decades that Mary really needs to attack," Wilson added, referring to GM Chief Executive Mary Barra.

Wilson added that he thought GM's stock was "woefully undervalued." GM's shares were up 1.1 percent at $33.45 in midday trading on Wednesday. (Additional reporting by Ben Klayman in Detroit; editing by Andrew Hay)

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Comments (1)
msdds1 wrote:
Can anyone please explain to me how such an important problem including deaths got stuck at “mid level” management. ? Sounds like Mr Wilson is covering for someone.
No one at the top was or is aware or responsible. Clueless at the top. That as a crime in itself. Once again, some poor soul at the middle will be the hit guy for GM.

May 21, 2014 12:46pm EDT  --  Report as abuse
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