Safety Culture at General Motors Post the Ignition Switch Recall Crisis
| Case Code: HROB221 Case Length: 11 Pages Period: 2004-2019 Pub Date: 2020 Teaching Note: Available |
Price: Rs.300 Organization : General Motors Industry :Automotive Countries : United States Themes: Organizational Culture/ Job Design/ Training & Development/Systems Thinking |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
In September 2018, a federal judge in New York dismissed criminal charges against General Motors Company (GM) in connection with faulty ignition switches in some of its vehicles that had led to one of the deadliest vehicle defects and biggest recalls in the US automobile industry’s history. The issue began over a decade ago after customers first complained about safety issues related to the ignition switch in the Chevrolet Cobalt (Cobalt), a compact car launched by Chevrolet (a division of GM), in 2004. GM had paid a total of US$900 million in fines to settle a US Department of Justice criminal case. The company also paid about $2.6 billion in penalties and settlements, including the fine , and agreed to federal monitoring by an independent Monitor appointed under the ‘Deferred Prosecution Agreement’ that the company entered into as part of the US Department of Justice investigation of the ignition switch recall.
GM announced a recall in February 2014 that ended with some 30 million small cars being recalled by the end of 2014 beginning with the Cobalt and Pontiac G5 models..
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