WASHINGTON (AP) — Lawmakers expressed disbelief Wednesday
at General Motors’ explanation for why it took 11 years to recall
millions of small cars with defective ignition switches, and also
confronted its chief executive with evidence that the company dragged
its feet on a similar safety issue in different vehicles.
CEO Mary
Barra and attorney Anton Valukas, who recently released a 315-page
investigative report into the recall, endured skepticism and some
lecturing at a House subcommittee hearing. One member referred to the
actions of some employees described in the report as "insane."
The
GM recall has triggered a deeper look at ignition switches across the
auto industry. On Wednesday, the government opened an investigation into
reports of defective switches in 1.2 million Chrysler vehicles.
Barra
made her second appearance before the committee since GM recalled 2.6
million small cars in February. As families of some of the people who
died in crashes in Chevrolet Cobalts and Saturn Ions looked on, she was
again pressed on whether GM’s commitment to safety has changed much.
Rep.
Fred Upton, R-Mich., read a 2005 e-mail from a GM employee who had a
2006 Chevrolet Impala stall on her after its ignition slipped out of
position while she was driving it. "I’m thinking big recall," the
employee wrote — but that recall never came until this week.
Upton
asked Barra what GM would do with such an e-mail if it was sent today,
and Barra said GM would take "immediate action." GM has issued 44
recalls covering nearly 18 million cars in the U.S. this year.
Barra
noted that GM has recently hired 40 more safety investors. But when she
acknowledged that most of them were promoted from within GM, another
member suggested GM get some "outside fresh blood."
Lawmakers at
the hearing were skeptical of many of the conclusions in Valukas’s
report, which was paid for by GM and released June 5. The report found
that a lone engineer, Ray DeGiorgio, was able to approve the use of a
switch that didn’t meet company specifications. Years later, he ordered a
change to that switch without anyone else at GM being aware.
Panel
members said that defied credibility at a company with 210,000
employees. Rep. Jan Schakowsky, D-Ill., produced e-mails showing that
other employees were informed of the change.
"I do think these documents point to the fact that the problem at GM is deeper than one rogue
engineer," she said.
Valukas
said the employees notified by DeGiorgio were from the warranty area,
and the change "meant nothing to them." But he conceded his law firm did
not interview everyone included in the emails.
GM blames the
switches for 13 deaths, but Rep. Diana DeGette, D-Colo., said there
could be up to 100 deaths associated with the problem.
Photos of
some of those victims lined the back wall of the packed hearing room,
and about a dozen relatives of victims attended the hearing.
GM is
establishing a compensation fund for those killed or injured because of
the switches, and Barra said Wednesday there will be no cap on the
amount the fund can pay out. Attorney Kenneth Feinberg is still
determining who will qualify for compensation, she said. GM expects to
start taking claims Aug. 1.
"We want to capture every single person who suffered injury or lost a loved one," Barra said.

But
Rep. Morgan Griffith, R-Va., said GM’s lawyers are trying to use the
company’s 2009 bankruptcy to thwart lawsuits. He said GM wants to force
victims from pre-bankruptcy crashes to accept its settlement offers or
risk getting little compensation.
Barra didn’t directly respond to Griffith’s complaint.
The
ignition switch in Cobalts, Saturn Ions and other cars could move out
of the run position because of a heavy keychain or a bump of a knee.
That causes the engine to stall, cuts off power-assisted steering and
brakes and disables the air bags.
GM took years to make the
connection between the switches and the air bag non-deployment. Valukas
said a culture that prevented information sharing and discouraged people
from taking action on problems was partly to blame.
Valukas said
GM engineers also viewed the ignition switch malfunctions and engine
stalling as a "customer convenience issue" rather than a safety problem,
believing drivers could adequately control their cars without power
steering and power brakes.
"That’s just insane, isn’t it?" DeGette asked Valukas.
"I don’t want to use the word insane, but I’m deeply troubled by that," he replied.
Barra
confirmed GM has dismissed 15 people who "didn’t take action, or didn’t
move with urgency" to solve the ignition problems. DeGette said she has
heard there is "more paranoia" within the company since the Valukas
report came out.
But Barra said she is also encouraging employees
to speak up about potential safety issues and is rewarding — not
punishing — those who do. She said she has already gotten dozens of
emails from employees reporting safety concerns.
Rep. Michael
Burgess, R-Texas, said he thinks more than 15 should have been
terminated, based on what he read in the Valukas report.
GM paid
the maximum $35 million fine to the government in May for failing to
disclose the problem sooner. Rep. Paul Tonko, D-N.Y., said that’s not
enough of a deterrent for a company like GM, which earned $3.8 billion
last year. A bill now in the Senate would lift the cap on government
fines.
Tonko said the government’s regulatory agency, the National
Highway Traffic Safety Administration, needs more detailed data from
automakers to help track safety problems.
NHTSA admitted during
April testimony that it was contacting other automakers and suppliers to
find out how their ignition switches interact with air bags. That could
lead to even more ignition-related recalls. On Wednesday, the agency
opened an investigation into switches on 1.2 million Chrysler vehicles
after getting complaints that the cars can suddenly stall and the air
bags won’t inflate in a crash.
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Durbin and Krisher reported from Detroit.