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General motors CEO to appear before Congress again



WASHINGTON (AP) -- Lawmakers are likely to express skepticism about some findings of a General Motors' investigation into its mishandled recall of 2.6 million small cars when CEO Mary Barra appears before Congress Wednesday.

According to a congressional aide, members will have more questions about how much Barra knew about a problem with the ignition switches in the cars when she was GM product development chief. Barra said in previous testimony in April that she first learned of the problem late last year. The GM report exonerated Barra and other top executives.

The aide requested anonymity because the questions haven't been made public.

Former U.S. Attorney Anton Valukas, who was hired by GM to do the investigation, will also testify. Panel members will question Valukas on his conclusions that a lone engineer, Ray DeGiorgio, was able to approve the use of a switch that didn't meet company specifications, and years later, to order a change to that switch without anyone else at GM being aware, the congressional aide said.

The panel's own investigation turned up evidence that at least five other GM employees were aware that DeGiorgio ordered the company that made the part to change the switch, the aide said.

Barra plans to tell lawmakers that she's taken steps to fix GM in the wake of the small car recall. She authorized a companywide safety review that has led to more than 40 recalls this year that cover almost 18 million cars in the U.S. GM has said that more are possible.

Here are some other questions lawmakers are likely to ask Barra and Valukas:

BARRA

-Q: How does GM plan to change the cumbersome corporate culture laid bare by Valukas's report?

Valukas' investigation found that a pattern of incompetence and neglect within GM kept the ignition switch problem concealed for 11 years. Rep. Diana DeGette of Colorado, the senior Democrat on the Energy and Commerce investigative subcommittee, said this week she wants to know "what are they going to do to break this culture." Barra has acknowledged that the report drew a "deeply troubling" portrait of GM as an organization. According to her prepared remarks, Barra will tell the hearing that GM has restructured its process for making safety decisions "to raise it to the highest levels of the company," among a number of changes.

-Q: How will GM compensate victims of crashes linked to the faulty switches?

Barra says the company expects to begin processing victims' claims for compensation by Aug. 1. Lawmakers want details. GM has hired attorney Kenneth Feinberg to put a plan in place; he'll rule on who is eligible to receive compensation and will set the amounts. More than 300 claims have been filed. Feinberg has presided over compensation plans for the victims of the Sept. 11 terrorist attacks, the 2010 BP oil spill in the Gulf of Mexico and other disasters.

-Q: Could the seeds of an even wider problem be lurking within GM's corporate structure?

Barra has said that the safety review is nearly complete and hasn't turned up any other serious problems. She called the ignition-switch debacle a "unique series of mistakes" made by the company over many years. The news Monday of another huge recall for a problem similar to the ignition-switch defect has fueled lawmakers' skepticism. "This latest recall raises even more questions about just how pervasive safety problems are at GM," Rep. Fred Upton, R-Mich., chairman of the Energy and Commerce Committee, said.

VALUKAS

-Q: How bad were the problems at GM.

He and his team know GM thoroughly after interviewing 230 employees and reviewing 41 million documents. Valukas will tell the hearing that his team found an alarming "lack of urgency" among GM employees to fix the switches, magnified by a dysfunctional corporate structure. He acknowledges that his report leaves open some questions, notably: whether there was civil and criminal culpability; whether GM will make the right decisions to stop this from happening again; and what specific crashes were caused by the ignition switch problem.

-Q: Do the actions that GM has taken so far appear sufficient?

In addition to making organizational changes, the company forced out 15 employees and disciplined five others for their roles in the ignition-switch debacle. More than half the 15 were senior legal and engineering executives who failed to disclose the defect and were part of a "pattern of incompetence," according to Barra. The Justice Department likely will use Valukas' findings as a "road map" for questions and employees to pursue in its criminal investigation.

Join the discussion

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lareginaproduce June 18 2014 at 8:38 AM

And GM will be the first ones to cry for a Bailout. There is no Initiative for them to improve when they know the government will not let them fail. Stick with Ford at Least they have Pride and Refused to be bailed out.

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11 replies
drboots4 June 18 2014 at 8:11 AM

If she was in upper management she knew about it .

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8 replies
b4score June 18 2014 at 9:51 AM

GmlM lied, so did hillary clinton. hilly baby should be brought back and question about bengazi, but our chicken **** congress will not do that.

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3 replies
Chuck and Rose June 18 2014 at 8:19 AM

I would STILL like to know what happened to all those billions of dollars the Govt. gave you a short time ago. That's a lot of bucks to disappear so fast. How many Fu3k-ups are sitting home enjoying that loot right now along with the govt. people involved in the transfer. This is what happens to democracies when WE allow it.

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4 replies
Bill June 18 2014 at 8:12 AM

Buy ford. Gm cares about no one but themselves. A greedy bunch for sure. They screwed their shareholders and then American taxpayers, they took a huge loan from our tax money and now say they can't pay it all back, while they boast of huge multi-million dollar profits.

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8 replies
RED SKULL June 18 2014 at 8:50 AM

Why you think Ford is any better ? Your dreaming. Ford got their loan just before the mortgage crisis they would have been in the same boat. It was a world crisis caused by greedy bankers and our great Washington morons. Many Americans suffered when the Banks who caused the problem were helped first. For the People ? Think again. Just like the WMD's . Lies.

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6 replies
autounionbailout June 18 2014 at 9:58 AM

I VOTE ALL MIDDLE CLASS AMERICAN TAXPAYERS CHIP IN TO HELP BAIL OUT THE AUTO UNION...

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6 replies
markruck June 18 2014 at 9:08 AM

Let's see how Barra gets to Washington next week. If it's in the GM corporate jet, that'll tell us everything we need to know.

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1 reply
davedoe12 markruck June 18 2014 at 9:36 AM

Who cares!

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1 reply
Harley_D davedoe12 June 18 2014 at 10:04 AM

You are what's wrong with our system.

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jnjbeery June 18 2014 at 10:19 AM

I use to laugh every time I went by GM in Michigan and there would be hundreds of people sitting outside in lawn chairs because GM ran out of some part so they shut the line down and the people sit outside for the rest of there shift doing nothing and get paid for it. That's why there cars are over priced, and in case you wonder why businesses go over seas or to Mexico it's because of that very thing, they want people that work not sit on there azz waiting for some part. But the union won't et them do anything outside of there job description. LMAO

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5 replies
emsteksrv June 18 2014 at 9:37 AM

Why cant congress get to the bottom of the IRS scandal but can drag this woman in front of them to be harassed over and over again?

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2 replies
billcdaly emsteksrv June 18 2014 at 9:39 AM

Good post.

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ERIK emsteksrv June 18 2014 at 12:10 PM

because the IRS is government. the Congress can subpoena any people or evidence it feels are relevant. But any person compelled to testify before Congress can invoke their right against self-incrimination.

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