Denver, CO, 06/11/2014 (Stocksntrade) – Mary T. Barra, who is the Chief Executive of General Motors Company (NYSE:GM), said in an annual meeting that Kenneth Feinberg would ‘independently determine’ the number of people died or seriously injured due to fault ignition switches of its small cars. Kenneth Feinberg is a lawyer who specializes in victim compensation and has a high reputation in administering and designing complex compensation programs. Now, GM is counting on his expertise to come up with a number that will cover all the causalities which took place because of the company’s defective ignition switches. These is the reason GM expects that the number of accidents and death involved in this case will increase after this independent compensation plan is completed.
GM Employees Watched Silently For Years
General Motors Company (NYSE:GM) has refused to reveal the estimated compensating cost. Since February, the company has recalled nearly 2.6 million old cars and some other models as well and nearly $1.7 billion was spent in replacing the defective switches. The company also initiated a three month investigation program to dig deep into the matter that why there was a delay in the replacing these faulty switches. Its report was out last week by Anton R. Valukas, a former United States attorney, and he mentioned that GM employees just watched silently for years and failed to make the replacements in Chevrolet Cobalts, Saturn Ions and other small cars. After this report, 15 employees were dismissed, and this included at least 3 senior corporate lawyers and 5 other employees were disciplined.
Shareholders Too Disappointed
Throughout these crises, this was the first time that Ms. Barra had addressed the shareholders and assured that customer safety has always been their major concern. Once again apologies were made to the victims of the accidents, and stress was given on the fact that the company failed to recall the defective cars for years even when it was known that this defect could cause power loss and could deactivate air bags. There were not more than 30 shareholders in the meeting indicating a severe disappointment in General Motors Company (NYSE:GM).