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57 cents is too much for GM
Posted: Fri Apr 04, 2014 10:28 am
by BMCC
I've been looking over the ignition switch problem GM had in a number of their models in recent years. Turns out that a solution had been found that would have cost 57 cents for the part and about 1.5 million dollars to put on the affected models (solution was found in 2005, Income in 2013 was nearly 4 billion). GM executives decided that it was not cost effective and decided against it. I believe 13 people have died as a result of the ignition barrel moving to the accessory position while driving. So to GM your life ain't worth 57 cents and they can settle law suits for less than 1.5 million in total. I think this is pretty damning of corporate culture (not just in the USA). Is it time we brought in a law in this country that says you act like this we shut you down and sell off the assets, like a sort of corporate death penalty? if Honda did something like this would we be content that they go out of business (at least in the UK)? Can you ever fine a business enough to get the message through about their responsibility to customers?
I don't know but 57 cents per car to fix the problem is surely pretty damning. What's the forums thoughts on this?
Posted: Fri Apr 04, 2014 12:15 pm
by wurlycorner
Don't forget that in 2005 GM were actually pretty much Bankrupt - they limped on until 2009 when they filed for Bankruptcy protection, so no doubt they didn't actually didn't have $1.5mil spare cash to go round doing recalls at the time and on balance determined the risk was small enough that they were better off not doing the recall. (This is all supersition of course, either way because we don't know for sure what was going on). However, if they'd gone bust back then, there would be no company to do the recall at all, so everyone would be in a far worse position now!
We sure as heck don't need more laws to allow people to be sued (Corporate Manslaughter already exists in this country by the way and has been used to prosecute - and this goes all the way back to prosecuting the Company Directors, with the punishment of prison rather than just closing the company)
I'm not saying that having an engine cut out on you is acceptable, but... Having an engine cut out on you doesn't necessarily mean you're definitely going crash/die, either - people run out of petrol and their engine stops but they don't crash/die, after all!
I've had throttle pedals get stuck fully down when joining a busy roundabout before now and had engines cut out on in me in traffic - it's not fun, but jobby does happen and when it happens, it what the person then does/how they react that ultimately determines their fate. That part of 'reasonable' always seems to get forgotten these days. The throttle got stuck down because of the floor mat I'd put in the car. Should it be possible for me to go back to Citroen and sue them because they sholud have assessed that I might fit the wrong floor mat and it might then cause the throttle pedal to get stuck down, which might happen at a particular time/situation that might mean a crash was inevitable and that crash might result in serious injury/death to me? No, it bloody shouldn't - if it did, nothing would ever get made!
The reason why so many Directors of big companies get paid so much isn't because they're 'fat cats' it's because under our laws they now carry the can for anything that goes wrong in their company, ultimately punishable by THEM going to prison for something they may have had no knowledge of/little influence over. That's a big risk they're taking so it's not surprising they ask for mega-bucks in return.
(sorry OT rant over) :rant:
Posted: Fri Apr 04, 2014 12:43 pm
by BMCC
Some more info on the problem:
http://www.dailymail.co.uk/news/article ... nyway.html
Looks like they knew about it from 2001 and they passed the part that they knew didn't meet their specifications.
"The reason why so many Directors of big companies get paid so much isn't because they're 'fat cats' it's because under our laws they now carry the can for anything that goes wrong in their company, ultimately punishable by THEM going to prison for something they may have had no knowledge of/little influence over."
They knew about it and did nothing about it as the MD made clear in the congressional hearing
Putting mats in and then not being able to release the throttle would be your fault not your car manufacturer. However if they fitted the mats as standard then it would/should be their fault as I believe happened to Toyota.
Posted: Fri Apr 04, 2014 1:26 pm
by Confused
Every car manufacturer does it, and has been doing it since forever - this is a clip from the film "Fight Club"
[youtube]wIdmkETuWeM[/youtube]
Posted: Fri Apr 04, 2014 2:00 pm
by BMCC
Confused wrote:Every car manufacturer does it, and has been doing it since forever - this is a clip from the film "Fight Club"
[youtube]wIdmkETuWeM[/youtube]
Doesn't make it right, nor should consumers accept it
Posted: Fri Apr 04, 2014 3:55 pm
by mercutio
BMCC wrote:Confused wrote:Every car manufacturer does it, and has been doing it since forever - this is a clip from the film "Fight Club"
[youtube]wIdmkETuWeM[/youtube]
Doesn't make it right, nor should consumers accept it
no they shouldnt but Honda did it with the car your driving did a recall with a part that does the same thing and then refused to do the recall again
Posted: Fri Apr 04, 2014 7:50 pm
by BMCC
Did it take them 12 yrs and 13 deaths?
Posted: Fri Apr 04, 2014 10:21 pm
by mercutio
dont know why dont you ask somehow i dont think they will tell you how many people died if any did

Posted: Sat Apr 05, 2014 2:53 am
by BlackShadow
Ford had the same issue with the Pinto back in the 70's. They calculated it would be cheaper to pay off families of the dead (burned alive in their cars) than to fix the gas tanks.
Sad to see the same thing goes on 40 years later.