General Motors Company (NYSE:GM) Sends Two On Paid Leave – Costs Of Recall Escalate

804

Dallas, Texas 04/11/2014 (FINANCIALSTRENDS) –  General Motors Company (NYSE:GM) reported late in the evening on 10th April that it has sent on leave two engineers on paid leave, in connection to the ongoing internal investigations about the delay in initiating recall of faulty cars earlier this year.

The investigations are being conducted by outside attorney’s and is looking into the reasons behind the close to a decade long delay in recalling  cars with faulty ignitions. At last count the car maker has recalled close to 2.2 million vehicles which are suspected to be affected. The action taken by the car maker to send two employees on leave pending conclusion of investigations, is the first step it has taken in fixing responsibility for those who had led to this monumental P.R and branding debacle, in which the car maker is being accused of not doing anything for close to 10 years, even after several internal tests had identified the deadly ignition switch issue.

In a related development, General Motors Company (NYSE:GM) has also let it be known that it has identified a second issue with the ignition system which needs to be repaired. Including the latest issue that has come to light, the car maker has pegged the costs of fixing recalled cars to nearly $1 billion in the current quarter.

General Motors Company (NYSE:GM) Chief Executive Officer Mary Barra has been quoted to have said yesterday that the sending of engineers on leave is a “interim measure” and other unnamed company executives have been quoted to have said that in the event of the employees oversight or culpability in this episode is established, they might be sent on early retirement or even forced to quit.

It is appropriate to note here that General Motors Company (NYSE:GM) has already acknowledged that atleast 13 people have lost their lives in accidents which are linked to GM cars with faulty ignition.

Subscribe to get your free report!

* indicates required
*Past performance is not a predictor of future results. All investing involves risk of loss and individual investments may vary. The examples provided may not be representative of typical results. Your capital is at risk when you invest – you can lose some or all of your money. Never risk more than you can afford to lose.By submitting your information you agree to the terms of our Privacy Policy • Cancel Newsletter Any Time.This is a FREE service from Finacials Trend. Signing up for our FREE daily e-letter also entitles you to receive this report. We will NOT share your email address with anyone.