GM recall scandal isn't in the rear-view mirror yet

Sep 18, 2014

Credit Steve Carmody / Michigan Radio


When General Motors appointed Kenneth Feinberg as its so-called "compensation czar," it was clear the automaker hoped to have Feinberg determine damages to victims of the ignition-switch debacle, pay, and move on.

But as Detroit News business columnist Daniel Howes writes today, things are not working out that way:

Back-channel word from General Motors Co. is that the ignition-switch scandal responsible for 19 deaths ... upped the official tally nearly 50% from the 13 the automaker confirmed to federal regulators.

Howes says if the death count gets a lot larger, that may hurt GM's credibility. And, ultimately, all of the car companies could be impacted by GM's action.

"You're already seeing companies starting to beef up their compliance and safety organizations and change the way recalls are reported up the chain to senior management. All of that can be directly attributed to General Motors and the ignition-switch recall," Howes says.

* Listen to our interview with Daniel Howes above.