NEW YORK/WASHINGTON/DETROIT (Reuters) – Federal prosecutors are examining whether General Motors is criminally liable for failing to properly disclose problems with some of its vehicles that were linked to 13 deaths and led to a recall last month, according to a source familiar with the investigation.
The New York-based probe is in its early stages, and the source did not elaborate on the legal theory behind the potential criminal liability.
DETROIT, March 10 (Reuters) – General Motors Co on
Monday said it had hired two outside law firms to probe the
company’s response to ignition-switch problems on cars that have
been linked to 13 deaths, but both firms have done business with
GM, raising questions of conflict of interest.
The review will be led by Jenner & Block chairman Anton
“Tony” Valukas, who won wide regard for investigating Lehman
Brothers after the financial services firm collapsed in 2008.
His report alleged that the firm used accounting gimmicks and
had been insolvent for weeks before it filed for bankruptcy.
DETROIT (Reuters) – In her first big test as General Motors Co’s chief executive, Mary Barra has taken a hands-on approach behind the scenes in directing the automaker’s response to ignition-switch problems that have been linked to 13 deaths.
On Monday, GM said the team conducting an internal probe ordered up by Barra of the recall of more than 1.6 million vehicles is being led by the lawyer who investigated Lehman Brothers after the financial services firm collapsed in 2008.
DETROIT (Reuters) – General Motors Co said on Monday that the team conducting a probe of the company’s ignition-switch recall linked to 13 deaths is being led by the lawyer who investigated Lehman Brothers after the financial services firm collapsed in 2008.
Anton “Tony” Valukas is chairman of the law firm Jenner & Block, whose attorneys are helping with the investigation of last month’s recall of more than 1.6 million vehicles. Valukas could not immediately be reached for comment.
DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) needs to get through its ignition-switch recall and the resulting federal investigation quickly to avoid any lasting damage to its brand, but the federal probe could keep the problem in the public eye for at least six months.
Analysts and academics warn that a misstep by GM could leave it with a lingering headache, something Toyota Motor Corp (7203.T: Quote, Profile, Research, Stock Buzz) experienced from 2009 to 2011 with recalls linked to sudden acceleration. The Japanese automaker was criticized for being slow to react to complaints and initially blaming the drivers.
DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) ratcheted up discounts in February on its full-size pickups, but it is telling Wall Street analysts that it intends to maintain premium pricing and margins on the trucks despite a drop in volume and market share.
On Tuesday, Chuck Stevens, GM’s new chief financial officer and a key member of CEO Mary Barra’s executive team, was dispatched to New York to update Wall Street analysts on the automaker’s financial outlook, including the performance of its big trucks.
DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) is moving to learn more internally about its handling of the recall of ignition switches linked to 13 deaths, including questioning employees involved in the process from the start, according to two people familiar with the situation.
A team of attorneys investigating the No. 1 U.S. automaker’s recall of more than 1.6 million vehicles were interviewing employees on Wednesday, trying to learn exactly how the company handled the issue when it was first discovered in 2004, said the people, who asked not to be identified.
DETROIT (Reuters) – General Motors Co (GM.N: Quote, Profile, Research, Stock Buzz) Chief Executive Mary Barra said the No. 1 U.S. automaker was sorry for the recent recall of an ignition-switch linked to 13 deaths, and said the process would take time to play out but the company would work to ensure customer satisfaction.
In a letter to employees on Tuesday, Barra, who took over in January as the automotive industry’s first female chief executive, said the recall would “take time to play out” and GM would cooperate with all the parties involved. She said customer safety and satisfaction would be at the heart of every decision made.