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General Motors CEO Provides Few Details In Appearance Before Congress

It was only two months ago that Mary Barra, freshly crowned as the new General Motors chief executive officer, visited Washington DC as an esteemed guest of First Lady Michelle Obama for the State of the Union address. On Tuesday, Barra returned to the Capitol under more strained circumstances. For more than two contentious hours, she took questions from members of a House of Representatives subcommittee investigating General Motors years-long delay in initiating a recall of millions of vehicles that contained a defect that has killed at least 13 people. Why did GM accept faulty ignition switches that were below the company's set specfications? Why did GM learn about the problem in 2001 yet take no action until 2014? Will GM compensate victims' families even though the company's bankruptcy may limit its liability? Those were a few of the questions members of the House Oversight and Investigations Subcommittee asked. Few concrete answers were forthcoming. For her part, Barra sidestepped most of the questions, saying she wouldn't have information needed to answer them until an internal review is completed. David Friedman, the administrator of the National Highway Traffic Safety Administration, testified after Barra. The biggest news that emerged from the hearing was that General Motors has retained attorney Kenneth Feinberg to advise the company on its civil and legal responsibilities. He has made a career of resolving disputes and serving in a 'fixer' role, serving as the chief of the federal government's September 11th Victim Compensation Fund, as an administrator of compensation fund for victims of the BP Deepwater Horizon disaster and a similar fund for victims of the Boston Marathon bombing. Barra, who has been GM's CEO since January but been with the company since 1980, expects to meet with Feinberg on Friday, and have a concrete plan within the next 30-60 days. Yet Barra would not say for certain Tuesday that GM would compensate the victims at all. Despite repeated questions from Rep. Diana DeGette (D-Colo.), Barra did not outline the company's intentions. "I assume GM is hiring (Feinberg) to help identify the size of claims and then compensate the victims? Is that right," DeGette asked. "Is GM willing to put together some kind of a compensation fund for these victims that Mr. Feinberg will then administer?" "We've hired him to help assess the situation," Barra replied. "So really, there's no money involved at this point," DeGette asked.

GM adds 1,200 jobs at Detroit-Hamtramck plant

General Motors is making a big move at its Hamtramck, MI, factory, announcing it will add a second shift and hire over 1,200 workers within the next several months. It's expected that by early 2016, the factory will employ over 2,800 workers to build the Chevrolet Volt, Impala, Malibu, Cadillac ELR, and by early next year, the new CT6. According to GM Hamtramck spokesperson Courtney Zemke, 40 of the 1,200 positions are for salaried employees, while the remainder will be hourly positions. As for where these employees will go, positions are being made available across the factory, so GM isn't focusing on any particular area for its new hires. It's a similar story behind the hiring surge itself. GM said in its press release that the "second shift is necessary to meet forecasted market demand," a position Zemke reiterated. It's a matter of demand across the plant's portfolio, rather than any one particular product seriously outstripping supply. Naturally, the United Auto Workers is happy with the move. "The workforce at Detroit-Hamtramck is second to none," UAW Local 22 Shop Chairman Don LaForest said in the attached release. "We appreciate the opportunity to expand our UAW-GM family." Hiring is going on now, with the second shift slated to get underway in early 2016. GM's Detroit-Hamtramck Assembly to Add Second Shift and More Than 1,200 Jobs Plant will nearly double its workforce by early 2016 2015-10-22 DETROIT – General Motors is nearly doubling its workforce at Detroit-Hamtramck Assembly by adding a second shift and more than 1,200 hourly and salaried jobs. The addition of a second shift will increase the plant's workforce to approximately 2,800 people when hiring is completed. The second shift is necessary to meet forecasted market demand for the five cars produced at Detroit-Hamtramck. "This is the result of the award-winning vehicles Detroit-Hamtramck produces and the confidence GM has in our team to build world-class quality for our customers," said Plant Manager Gary West. Second shift hiring is underway, and the shift is scheduled to begin operations in early 2016. "The workforce at Detroit-Hamtramck is second to none," said UAW Local 22 Shop Chairman Don LaForest. "We appreciate the opportunity to expand our UAW-GM family." The 4.1 million-square-foot Detroit-Hamtramck Assembly opened in 1985. GM has invested $1 billion in the plant over the last six years, making it one of the company's most-agile manufacturing facilities in North America.

GM execs fired over fraudulent India emissions testing

General Motors hadn't had a recall in India since 1995. That changed when it was discovered that certain employees were playing tricks with local emissions testing in order to ensure passing grades for engines. More than ten GM Powertrain employees in India and the US have been let go over the ensuing emissions flap, including Sam Winegarden, VP of global engine engineering, a man who has been with the company since 1969, leading development of some marquee powerplants.
According to Automotive News, an internal investigation revealed that employees "violated testing procedures," sometimes swapping specially prepared low-emissions engines during testing regimes for the Chevrolet Tavera SUV equipped with the 2.0-liter and 2.5-liter engines. Employees were also manipulating weights in order to get vehicles placed into different emissions categories. The discovery has led to GM recall the 114,000 Taveras produced over an eight-year period and halting their production and sale.
The Economic Times of India reports that the issue is due to "a faulty component." GM has developed a solution to the issue, and once it is validated in testing and approved by the Indian authorities, the recalled vehicles will be fixed at dealers and production will resume.