The past few years have been rough for GM. Coming out of a massive auto sales slump, the automaker was forced to go begging to D.C. for a bailout. Just as they started to get the ship righted, another massive scandal exploded across the headlines. GM cars were killing drivers. The culprit?
A tiny part at least some in decision-making positions knew was defective. Now, with, according to the Associated Press, 124 dead as a result of that faulty part and executive inaction, GM has agreed to fork over $900 million in order to escape criminal prosecution. So desperate is their public relations position, not a few people are calling for those responsible to pay up and do their time.
They have a point. The Justice Department’s investigation turned up damning evidence showing GM’s legal and engineering staffs concealed problems for years, some say a decade … problems that led directly to their customers’ deaths. Still, no employees were charged. US Attorney Preet Bharara said the investigation continues, but that supposedly reassuring statement is not good enough for the families of those killed and likely not good enough for the legions of potential GM customers.
In other bad news for GM, the company said it would pay out another $575 million in civil settlements to families who filed civil suits because of the scandal. Other conditions just pile the pain on GM … who, by all accounts deserves to have the anvil dropped. An independent monitor has been appointed to oversee how GM handles any further safety issues. The company has also been charged with evidence tampering and wire fraud for attempting to lie and cover up their culpability in the deaths. Something the Justice Department said it is not taking lightly. And something the consumer public definitely shouldn’t either.
Tallied up, the whole horrid fiasco cost GM more than $5 billion. A cost that could have been corrected if the company had been willing to spend roughly a dollar per car … or less.
Roman Temkin is a real estate developer from NYC.
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