Some disturbing information has surfaced during the U.S. congressional hearings related to the ignition switch defect that has caused at least 13 deaths. According to an internal GM document provided to investigators, General Motors decided in 2005 not to replace the faulty ignition switch on new cars because it would have added less than a dollar to the cost of each vehicle.
The documents were released by the U.S. House Committee on Energy and Commerce on Tuesday, prompting lawmakers to rightfully ask GM CEO Mary Barra why GM failed to recall 2.6 million cars until more than a decade after it first noticed the ignition switch problem. According to a 2005 GM document cited, but not publicly shared, by Colorado Congresswoman Diana DeGette, it would have cost 57 cents for each car to fix the problem.
However, a series of 2005 emails between GM engineers obtained by Reuters reveal that the change would have cost an extra 90 cents per unit and additional tooling costs of $400,000. Tooling costs typically are amortized over several years.
Faced with these documents, Barra found the facts “very disturbing,” adding, “That is not the way we do business in the New GM.” The CEO also said the company has been changing from a “cost culture” to one focused on customers since the 2009 bankruptcy.
In the email exchange, one engineer named John Hendler said his team was prepared to continue using a switch that was made by Delphi Automotive and approved by GM, although Delphi had told the carmaker in early 2002 that the switch did not meet GM’s performance specifications. Hendler said the cars would continue using the old switch “until the piece cost can be eliminated or significantly reduced,” and targeted a new switch for 2009 models.
However, GM did change the ignition switch in 2006, but the process did not comply with the company’s own rules, as the force required to turn the redesigned switch was “still below GM’s original specifications,” according to Delphi. The redesigned ignition switch was installed on 2007 Chevrolet Cobalts and Saturn Ions in late 2006. Both models and many more have been recalled for this problem.
By Dan Mihalascu
Note: Below you’ll find a video with Jon Stewart’s take on GM’s “Switch-Gate” from The Daily Show
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