Yahoo – AFP,
5 June 2014
General
Motors CEO Mary Barra testifies before the House Energy and Commerce Committee
for a hearing on the GM ignition switch recall on Capitol Hill in Washington,
DC, April 1, 2014
Washington
(AFP) - General Motors chief executive Mary Barra said Thursday that the
company would take full responsibility for the faulty ignition scandal and compensate
victims of accidents tied to the defects.
Barra said
the saga of the ignitions on Chevrolet Cobalts and other models, which led to
at least 13 deaths, was "riddled with failure" but that there was no
management conspiracy to cover up 11 years of inaction.
The
corporate logo for the General
Motors Corporation is pictured in this
January
11, 2005 file photo in Detroit
(AFP Photo/Stan Honda)
|
"The
Cobalt saga was riddled with failure," she told a meeting of company
employees.
"We
misdiagnosed the problem from the very beginning... We have to own this
problem."
Despite the
involvement of senior executives in the failure to act on the problem when it
was known, Barra said the findings of the investigation by former US attorney
Anton Valukas found no coordinated effort to hide the problem.
There was
"no conspiracy by the corporation to cover up facts," Barra said,
citing the Valukas report.
GM is under
federal and congressional investigation for not having acted for years on the
deadly problem until this year, and victims and families of victims have filed
lawsuits against the company for damages which analysts say could run to the
billions of dollars.
GM is
creating a fund for the victims and have retained a high-powered injury
compensation lawyer to come up with a plan.
"We
are going to do the right thing for the affected parties," she said.
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