General Motors CEO Mary Barra will address the House of Representatives' Energy & Commerce Committee on Wednesday over an ignition switch glitch that has been linked to 13 deaths and 5.8 million recalls.
Committee members are expected to grill Barra about the company's negligence over the issue and the role of an engineer, Ray DeGiorgio, who played an instrumental role in the issue. (You can watch the hearing live below.)
Broadcast live streaming video on Ustream
Earlier this year, Barra testified that she was unable to answer certain questions until the company’s internal investigation was complete. On Wednesday, the committee will get those answers and compare them to their own findings, according to full committee Chairman Fred Upton (R-MI) and Oversight and Investigations Subcommittee Chairman Tim Murphy (R-PA).
Among the witnesses on Wednesday will be Anton Valukas, a former federal prosecutor who authored a 325-page report detailing GM's mishandling of the issue.
"The Valukas report, as you now know, is extremely thorough, brutally tough and deeply troubling," Barra wrote in a written testimony.
"It paints a picture of an organization that failed to handle a complex safety issue in a responsible way. I was deeply saddened and disturbed as I read the report. For those of us who have dedicated our lives to this company, it is enormously painful to have our shortcomings laid out so vividly. There is no way to minimize the seriousness of what Mr. Valukas and his investigators uncovered."
Barra went on to say that she's addressed many of the issues in the report.
Debate about death toll
In a testy exchange, Rep. Diana DeGette of Colorado, noted that "there may be up to 100 deaths" linked to the ignition switch recalls. Barra maintained that the figure is still 13.
Warning nine years ago
Rep. Fred Upton of Michigan also revealed that a GM employee was driving a 2006 Impala in 2005 and experienced an ignition-related stall. The employee wrote in an email that "I'm thinking big recall." Upton asked Barra when the recall actually occurred. As she fumbled, he answered "two days ago."
2005 email from #GM employee who experienced Impala shutoff was sent to now-fired engineer Ray DeGiorgio, others: pic.twitter.com/AYuF1BHUQ6— Nick Bunkley (@nickbunkley) June 18, 2014
GM hit with $10 billion lawsuit during Barra’s testimony
General Motors has been hit with a $10 billion lawsuit saying $GM should compensate car and truck owners for lost resale value.— CNBC Newsroom (@CNBCnow) June 18, 2014
As Barra was busy testifying at the recall hearing on Capitol Hill, GM was hit with a massive lawsuit in federal court in Riverside, California, that says the company should compensate car and truck owners for damage done to GM’s brand as a result of the deadly ignition switches.
GM spokesman Greg Martin declined to comment to Reuters about the $10 billion lawsuit.
"GM's egregious and widely publicized conduct and the never-ending and piecemeal nature of GM's recalls has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did when the GM brand meant safety and success," the complaint says.
Barra says dealerships are extending hours
When asked how GM can service all the 17.7 million or so cars that have been recalled so far this year, Barra said some dealers are extending their hours. Such dealers can service dozens of vehicles a day. Some fixes take hours, Barra said. She added that GM will start production of a replacement switch on another line soon to fill pipeline for repairs.
Your safety is paramount. Here’s what you should do if your vehicle is part of the ignition #GMRecall. pic.twitter.com/t0AZqJecfU— General Motors (@GM) May 1, 2014
Another line will begin manufacturing additional parts to fix ignition switches "within the week," she said. GM is also working with dealers to make sure there are enough loaner cars for customers addressing recalls.
GM's Barra: "It depends on the dealer and the issue" but "we’ve worked with rental companies to ensure we have enough" loaner cars #gmrecall— Alexander C. Kaufman (@AlexCKaufman) June 18, 2014
Allegations of a cover-up
Rep. Keith Gingery of Wyoming noted that the faulty ignition problem emerged in a lawsuit in 2013. He then asked why GM took 10 months to address it. “Why the foot drag? Is this typical of GM’s investigations into a product concern?" Gingery also said that the 10-month gap "smacks of a big coverup to me."
Valukas, when asked to define a cover-up, said it would be a case where someone knew they had a major safety issue and took steps to hide it. He says investigators tested GM employees’ answers in documents against documents.
Valukas, asked to define cover-up: We tested answers in documents against documents.— Automotive News (@Automotive_News) June 18, 2014
Bonuses linked to safety to be made "explicit," Barra says
Rep. Kathy Castor of Florida asked Barra how many years she received bonuses during the time the company had ignored the ignition glitch. Barra said she didn't know exactly, but got bonuses during some of those years. Castor then asked if bonuses will now be linked to safety, Barra said she didn't know, but will make sure such a link is "explicit."