Reuters - Video

EDITION: U.S. | U.K. | IN

Business

GM says recalls have had no meaningful impact on sales

Thursday, Jun 05, 2014 - 02:27

June 05 - General Motors’ internal report on its ignition switch recall tied to 13 deaths reveals incompetence, but not a conspiracy. Those let go were not at the most senior levels. Bobbi Rebell reports.

▲ Hide Transcript

View Transcript

General Motors says it fired 15 people over its ignition switch recall scandal- but those names did not include the most senior level executives- CEO Mary Barra-saying they were simply unaware of the problems. SOUNDBITE: MARY BARRA, CEO, GENERAL MOTORS (ENGLISH) SAYING: "There was no conspiracy by the corporation to cover up facts. In addition, the investigators found no evidence that any employee made a trade off between safety and cost. The pattern in this case is much more complex and nuanced. What Valukas found was a pattern of management deficiencies, and misjudgments, often based on incomplete data that were passed off at the time as business as usual. Unfortunately, the report found that these seemingly benign actions led to devastating consequences. In short we misdiagnosed the problem from the very beginning." Barra gave few specifics as she unveiled parts of a 300 page internal report- prepared by Anton Valukas- and did not say how the problem was allowed to fester for more than 11 years. GM confirmed it will soon begin compensating victims of crashes linked to the faulty ignition switches- and said the number of fatalities related to the defect may rise. GM has reported 13 deaths. So far GM has recalled 2.6 million cars because of the problem. The total cost of these and other recalls this year? $1.7 billion dollars. Ironically, while lawsuits continue to be filed on this issue- consumers have been taking all this in stride- May sales were up 13 percent compared to a year ago. Edmunds.com's Jessica Caldwell: SOUNDBITE: JESSICA CALDWELL, SENIOR ANALYST, EDMUNDS.COM (ENGLISH) SAYING: "It seems like they should have already turned away. I think if you look at the news out there I mean hearings, you are constantly hearing about millions and millions of GM vehicles being recalled and yet not only are we seeing more people are trading in their cars to buy new cars- talking about the new Cobalt, but they are also buying GM cars at a higher percentage. So it looks like this has completely flipped and this is a sales opportunity for GM rather than customers not wanting to buy GM products." Now that GM's internal investigation has been submitted, Congress is expected to announce a new round of hearings soon. Details on compensation for victims are expected by early August.

GM says recalls have had no meaningful impact on sales

Thursday, Jun 05, 2014 - 02:27

Top News »

Money »

S&P 500 just shy of record S&P 500 just shy of record

Wed, Aug 20, 2014 - (2:23)

Apple hits $100 a share Apple hits $100 a share

Tue, Aug 19, 2014 - (2:06)

Nasdaq closes at 14-year high Nasdaq closes at 14-year high

Mon, Aug 18, 2014 - (2:23)

Putin puts Wall Street in buying mood Putin puts Wall Street in buying mood

Thu, Aug 14, 2014 - (2:10)

We've become a promotional culture-RetailMeNot's Bodge We've become a promotional...

Thu, Aug 14, 2014 - (4:39)

Dow back to positive territory for year Dow back to positive territory for year

Wed, Aug 13, 2014 - (2:18)

Markets cheer Russia's Ukraine exit Markets cheer Russia's Ukraine exit

Fri, Aug 08, 2014 - (1:50)

Russia, Iraq push Dow to three-month low Russia, Iraq push Dow to three-month low

Thu, Aug 07, 2014 - (2:27)

Wall Street gains but telecom disconnected Wall Street gains but telecom disconnected

Wed, Aug 06, 2014 - (2:28)

Stocks zapped by energy weakness Stocks zapped by energy weakness

Tue, Aug 05, 2014 - (2:46)

Stocks recover with refocus on earnings Stocks recover with refocus on earnings

Mon, Aug 04, 2014 - (2:19)

The Exchange »

The Exchange: Hot commodity The Exchange: Hot commodity

Wed, Jul 16, 2014 - (9:25)

The Exchange: Constitutional crusade The Exchange: Constitutional crusade

Wed, Jun 25, 2014 - (11:35)

The Exchange: The value of money The Exchange: The value of money

Mon, Jun 02, 2014 - (9:53)

The Exchange: China’s Second Continent The Exchange: China’s Second Continent

Tue, May 27, 2014 - (9:35)

The Exchange: A master of business arts The Exchange: A master of business arts

Thu, May 08, 2014 - (8:24)

The Exchange: America's bankrupt cities The Exchange: America's bankrupt cities

Mon, May 05, 2014 - (8:52)

The Exchange: Let the rocking commence The Exchange: Let the rocking commence

Tue, Apr 08, 2014 - (8:13)

The Exchange: The Moneyball fallacies The Exchange: The Moneyball fallacies

Mon, Mar 24, 2014 - (9:54)

Is doing good a good business? Is doing good a good business?

Mon, Mar 17, 2014 - (7:38)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)

World Cup: Around the globe in 50 goals World Cup: Around the globe in 50 goals

Fri, Jun 06, 2014 - (1:08)

VIVID – Sydney’s spectacle of light VIVID – Sydney’s spectacle of light

Fri, May 30, 2014 - (1:37)

The week that changed Boston The week that changed Boston

Mon, Apr 14, 2014 - (3:28)