Phil Cannella Covers the News on GM: Still Cleaning Up the Mess - Crash Proof Retirement
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Phil Cannella Covers the News on GM: Still Cleaning Up the Mess

Phil Cannella Covers the News on GM: Still Cleaning Up the Mess

The Crash Proof Retirement Show® Discusses the Flaws with GM and Corporate America

GM’s CEO Mary Barra admitted that GM had been operating under a “cost culture” in the days before the 2009 bankruptcy. A cost culture is a softer way of saying they cared more about money than they did the millions of consumers that buy their product. This “cost culture” now has GM under investigation for allegedly allowing faulty ignition switches to be installed into their vehicles because it was a less costly than replacing them with safe ignitions. The faulty ignition switch can cause the car to shut off while driving, which will disable the airbag, power steering and anti-lock brakes.

Even more startling, newly disclosed emails show General Motors refused to initiate a recall in 2005 on the faulty product because the automotive giant didn’t want to spend the money to replace the part.

It is alleged that replacing the faulty ignition switch would have cost the company only 57 cents per vehicle.

A new review of federal crash data shows that 303 people died after the air bags failed to deploy on two of the models that were recalled last month.

General Motors may seek immunity from legal liability due to the 2009 bankruptcy which freed them from all product liability coming from production previous to the date of the bankruptcy.

As part of its $50 billion government bailout, GM became a new company in July 2009 when it exited bankruptcy. It left behind billions in bad debts and liabilities, including product liability claims for all crashes occurring before that date, as well as toxic waste left behind at abandoned factories. Present 10 Ways to Be Financially WISER!


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