Rep. Terry: GM ‘Going to Use Bankruptcy to Escape Liability’ in Recall Probe
There have been nearly 14 million automobile recalls so far this year, with GM leading the pack at nearly 6 million.
The GM scandal weighs heavily on the industry amid revelations that the company knew about faulty switches about a decade before issuing a recall this past February. The ignition switch is linked to at least 13 deaths.
Now, GM is facing lawsuits, congressional hearings and a federal probe.
Rep. Lee Terry (R-Nebraska), of the House Energy and Commerce Committee, has not been pleased with GM CEO Mary Barra’s responses at hearings about the company’s ignition switch recalls.
Terry said the committee is learning more from documents, which reveal that GM knew the ignition switch was faulty and noncompliant as early as 2004. Documents also show that in 2001, engineers chose the cheaper of two ignition models, and the one that they rejected is now the one that is replacing faulty ignitions.
The company was in bankruptcy protection during part of the time that the ignition switches were malfunctioning.
“They’re going to use bankruptcy to escape liability,” Terry said, stressing his disappointment and adding that the move will likely create more lawsuits.
“I want GM to survive this. I want them to be successful, but I think they’re really going to hurt their reputation […] they’ve got a lot at risk here for doing it the wrong way.”
Watch his interview above.
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