#AceWorldNews – UNITED STATES – April 02 – General Motors Co in 2005 decided not to change an ignition switch eventually linked to the deaths of at least 13 people because it would have added about a dollar to the cost of each car, according to an internal GM document provided to U.S. congressional investigators. (Reuters)
The U.S. House Committee on Energy and Commerce released the documents on Tuesday as lawmakers asked CEO Mary Barra why GM failed to recall 2.6 million cars until more than a decade after it first noticed a switch problem that could cut off engines and disable air-bags, power steering and power brakes.
Colorado Congresswoman Diana DeGette cited a 2005 GM document that she said showed a cost of 57 cents per fix.
DeGette did not release the document, and Reuters was unable to get a copy. However, Reuters obtained what appeared to be a separate document, a series of 2005 emails between GM engineers debating whether to make a change to the ignition switch.
The change would have cost an extra 90 cents per unit and additional tooling costs of $400,000, one email showed. Those tooling costs typically are amortized over several years.
Barra said she found the concept of turning down the change because of tooling costs “very disturbing. That is not the way we do business in the New GM.”
Read More: http://www.reuters.com/article/2014/04/02/us-gm-recall-delphi-idUSBREA3105R20140402