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General Motors CEO admits fault and discusses dangerous product

On behalf of Joel Rhine of Rhine Law Firm, P.C. posted August 19, 2016

It is rare that a large corporation, and especially its CEO, will admit liability and own up to mistakes. However, the CEO of General Motors recently did just that. North Carolina readers may be interested in learning about how the company did not appropriately identify an auto defect as a dangerous product. Now, the auto giant has admitted blame and is taking steps to protect consumers.

At the heart of the issue is a flawed ignition switch that has been linked to several deaths and injuries. If the impaired switches are accidentally bumped, it can result in the car losing power. When this happens, many safety systems within the vehicle are unable to function, such as air bags, power brakes and power steering. For reasons unknown and not explained, GM believed that the issues relating to this problem were actually a customer satisfaction problem and not a safety issue.

There are large numbers of lawsuits that are still pending in courts across the country. This defect has been tied to a minimum of 124 deaths and 275 injuries. GM has had to spend almost $870 million in order to settle approximately 1,800 claims, and the company has also had to pay $900 million in order to resolve a criminal investigation brought forth by the Department of Justice.

People in North Carolina who have been affected by a defective GM ignition switch or other dangerous product could benefit from contacting an attorney who focuses on product liability law. They can assist families in taking the necessary legal steps to seek compensation if such a tragic event occurs. This can assist families in paying for medical bills, loss of wages and other financial burdens brought about as a result of a dangerous product.

Source: Bloomberg, “GM CEO Barra Tells Jury Company Flubbed Fatal Ignition Flaw“, Margaret Cronin Fisk and Laurel Brubaker Calkins, Aug. 15, 2016

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Posted in: Products Liability



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