GM investigated over 1.6 million vehicles recallMarch 12, 2014 - 13:37 AMT PanARMENIAN.Net - A U.S. congressional committee said it is investigating General Motors' recall of nearly 1.6 million vehicles over faulty ignition switches, according to BBC News. The problem could turn off the engine in affected vehicles while they were being driven, disabling the airbags. The carmaker announced the recall last month, but it has admitted employees knew about the defect as early as 2004. The issue has been linked to 13 deaths and GM has also launched an internal investigation into the matter. Meanwhile, a recent report by the New York Times claimed that the U.S. safety regulator had received more than 260 complaints over the past 11 years about GM vehicles that "suddenly turned off while being driven". "But they declined to investigate the problem," the report alleged. The U.S. House Energy and Commerce Committee said that it is also investigating the National Highway Traffic and Safety Administration's (NHTSA) response to consumer complaints related to the problem. Fred Upton, chairman of the committee, said: "Did the company or regulators miss something that could have flagged these problems sooner? We plan to seek detailed information from both NHTSA and GM and will hold a hearing in the coming weeks." The recall covers six models: the 2005-07 Chevrolet Cobalt, 2006-07 Chevrolet HHR, 2007 Pontiac G5, 2006-07 Pontiac Solstice, 2003-07 Saturn Ion, and 2007 Saturn Sky. Recalls are not uncommon in the industry. However, the issue is being linked to deaths and General Motors' admission that employees knew about the defect for many years may prove tricky for the company, the BBC says. The NHTSA has already demanded detailed information from GM about when it knew of the problem and how it handled it. The carmaker could face fines if the regulators rule that it took too long to report safety issues. The company also faces recall and repair costs as well as potential liability claims. On Monday, March 10, the company said it had hired Anton Valukas, the Chicago-based lawyer who led the court-ordered investigation of the collapse of Lehman Brothers in 2008, to lead its internal inquiry into the matter. GM spokesman Selim Bingol said Valukas "has been charged to go where the facts take him and give the company an unvarnished report on what happened". The recall and the related investigations are the first major challenge for the new chief executive, Mary Barra. It also comes as GM reported a 22% drop in profits for 2013, hurt by disappointing performance outside North America. GM made a net profit of $3.77bn for the last financial year, down from $4.86bn recorded in 2012. Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Turkey extends military presence in Azerbaijan The Turkish parliament has adopted a bill submitted by Recep Tayyip Erdogan to extend the mandate of Turkish troops. Russia to begin assessing migrant workers' speaking skills Rosobrnadzor is planning to change the Russian language exam for migrant workers and include an assessment of speaking skills Armenian, Saudi Foreign Minister meet in Riyadh The two commended the positive dynamics of the development of political dialogue between Armenia and Saudi Arabia Pashinyan: Azerbaijan’s proximity shouldn’t worry border residents At the same time, he said that he “does not guarantee [the security of villagers] one hundred percent”. |