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UPDATE 1-GM files 200,000 pages of documents about recall to safety agency

Fri, 04th Apr 2014 13:44

(Adds details of Eller hiring, other background)

DETROIT, April 4 (Reuters) - General Motors Co saidit has submitted most of the answers that U.S. safety regulatorssought from the automaker about a defective ignition switchlinked to at least 13 deaths.

In response to the National Highway Traffic SafetyAdministration, GM sent some 200,000 pages of documents to thesafety agency by a Thursday midnight deadline, GM spokesman GregMartin said on Friday. The company has provided answers tonearly 65 percent of the 107 questions that the NHTSA asked, hesaid.

"GM is cooperating fully with NHTSA and is keeping theagency apprised at every step of its progress as it works torespond to the remaining questions within the special order,"Martin said in an email.

NHTSA said in a statement it has been receiving documentsfrom GM and "will take appropriate action based on the agency'sreview." The agency did not provide a timetable for making thedocuments public.

In addition to the NHTSA, the U.S. Senate and House ofRepresentatives are investigating why GM took more than a decadeto recall 2.6 million cars to replace the faulty switches. Thelargest U.S. automaker also faces a criminal probe by theDepartment of Justice.

Without warning, the switches can make vehicle engines stallwhile operating, stop air bags from deploying, and powersteering and power brakes from operating.

GM Chief Executive Officer Mary Barra endured a witheringattack at a Senate hearing on Wednesday that opened withaccusations that the company fostered "a culture of cover-up."Barra also faced a House panel on Tuesday.

Since February, GM has recalled 2.6 million vehicles. And sofar this year, GM has recalled a total of nearly 7 millionvehicles, or about the same number recalled in the previous fouryears combined.

GM also confirmed the hiring of Jeff Eller, a crisismanagement adviser, to help in its response to the recall. Ellerdeclined to comment, referring questions to GM.

Eller was chairman at Public Strategies Inc, whichrepresented Bridgestone Corp's Firestone during itstire recall in 2000. He was also director of media affairsduring President Bill Clinton's administration.

"As we have from the start, we are drawing upon those whohave deep experience and expertise in these matters," GM'sMartin said. "Jeff will join a team who is helping us guide ourresponse.

It is GM's third high-level outside hire since the defectiveswitches came to light.

On Tuesday, Barra said GM had hired attorney KennethFeinberg to examine what steps the company might take forfamilies of crash victims. Barra said this week GM would take upto 60 days to evaluate the matter.

Feinberg administered funds to compensate victims of theSept. 11, 2001 attacks, the BP Plc oil spill, andBoston Marathon bombing.

Safety advocates said the move indicated the company wasexploring setting up a victims' compensation fund, although GMhas not confirmed that.

GM has also hired former U.S. Attorney Anton Valukas to leadthe company's internal probe of why it took so long to discoverthe defective switches. Barra said this week that would wrap upin 45 to 60 days.

Valukas was the court-appointed examiner in the LehmanBrothers bankruptcy. His probe resulted in a report in 2010 thatdetailed the causes of the firm's spectacular collapse.

The automaker has said it would take a charge of $750million in the first quarter, mostly for the recalls announcedin that period, including ones linked to the defective ignitionswitch. That was increased from $300 million.

On Thursday, GM said in documents filed with the U.S.Securities and Exchange Commission it will also take a $400million charge in the first quarter because of currency changesin Venezuela.

Separately, Ford Motor Co said on Tuesday it wouldtake a first-quarter charge of $350 million to resolve currencyissues with its business in Venezuela. (Reporting by Ben Klayman and Bernie Woodall in Detroit;Editing by Jeffrey Benkoe)

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Comments and questions to newsroom@alliancenews.com
  
A full 21-day events calendar is provided each day with a subscription to Alliance News UK Professional.
  
Copyright 2024 Alliance News Ltd. All Rights Reserved.

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