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General Motors Company (NYSE:GM): Mary Barra Promises To Do It The Right Way

Boston, MA 04/01/2014 (wallstreetpr)  – General Motors Company (NYSE:GM)’s CEO Mary Barra will appear before the Congress on Tuesday, in relation to the recalling of 2.6 million vehicles for some defect in their ignition switches, which has further led to 13 deaths.

Many private law firms and regulators are probing the events that occurred and led to GM’s decision to recall these cars. It is said that there is evidence to suggest that GM knew of the errors in their designs and how fatal damages could be caused as a result of them. Even then, the company took as much as about 10 years to make a recall.

Barra’s testimony was released on Monday, even as the company decided to recall another 1.3 million vehicles due to an issue regarding the power-steering.

What she will tell the Congress?

It seems that Barra will inform the Congress that she does not know about the happenings of what went wrong at GM earlier but that would definitely find out about the matter. The GM boss has also offered apologies to all customers who have been affected by the recall of these vehicles and is sorry for the friends and families of those who have been injured or lost their lives.

She also said that the problem was revealed to the world simply because they wanted to fix the issue, also that the company had a responsibility towards its customers and would not run away from them and for that reason, GM needed to do things in the right manner this time.

Investigation is being undertaken

The company is also taking steps to know what had actually happened. They have asked Anton Valukas, a former US attorney to undertake a “thorough and unimpeded investigation,” said the GM boss.

GM expects that this recall of cars will set them back by as much as $750 million.

Government officials have taken to examining almost 200,000 pages of documents from GM and also about 6000 pages from the National Highway Traffic Safety Administration (NHTSA) with talks ongoing over opening formal investigations. Over the weekend, the NHTSA said it had had reviewed data from various sources back in 2007, but the data available to them at that time was not good enough to warrant a formal investigation.

Published by Pamela Garcia

Pamela Garcia is a keen follower of U.S. stock market

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