agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM Faces Fresh Congressional Grilling

July 14, 2014
3 min to read


General Motors Co. Chief Executive Mary Barra returns to Capitol Hill this week for what may be her last and toughest hearings with U.S. lawmakers over the auto maker's botched response to a faulty ignition switch that has landed GM in hot water with federal regulators and the Justice Department, reported The Wall Street Journal.


On Thursday, Ms. Barra will face Sen. Richard Blumenthal (D., Conn.), one of her harshest critics, and Sen. Claire McCaskill (D., Mo.), who remains skeptical of GM's response to the issue and its internal probe that cleared the auto maker's executive team and pinned the lack of response on lower-level engineers, lawyers and a dysfunctional company culture. It took the auto maker nearly 11 years to issue a recall for the 2.6 million Chevrolet Cobalt, Saturn Ion and other older model vehicles equipped with the faulty switch.

Ad Loading...


Ms. Barra needs a smooth hearing process as she looks to move the focus from the Detroit-based auto maker's recall woes and back to the company's strong sales and financial performance. The auto maker is set to release its second-quarter earnings later this month. This will be Ms. Barra's second appearance before a Senate subcommittee.


Most of the attention for the past five months has been on the ignition-switch issue. The defective switch can slip from the "run" to "accessory" position if the key is jarred or bumped. As a result, power can be cut to the vehicle disabling the electronic steering and air bag deployment. GM has attributed 13 deaths to accidents involving the faulty ignition switch, although plaintiff attorneys say the number is much higher. The company has dismissed 15 employees, disciplined five others, revamped some of its internal operations and recalled millions of cars for a variety of issues.


Compensation expert Kenneth Feinberg, hired by GM to handle payouts to victims, will also testify and is expected to be asked for more information on how many people he estimates have been hurt or killed. Mr. Feinberg has declined to provide a figure until he reviews claims. The claim process runs from Aug. 1 through the end of the year.


Chicago attorney Anton Valukas, who handled GM's internal probe, has also been called to testify.


Rounding out the witness list are Michael Millikin, GM's general counsel, and Delphi Automotive PLC CEO Rodney O'Neal. It's the first time either will testify in the matter. As the auto maker's top lawyer, Mr. Millikin is expected to face questions about why he didn't know about the ignition-switch problem sooner since lower-level lawyers were settling Cobalt crash claims out of court.

Ad Loading...


Mr. O'Neal will be asked how his company interacted with GM in the design and manufacturing of the switch. Delphi contends it was only following GM's direction, including a move by former GM engineer Raymond DeGiorgio, who modified the switch in 2006 but approved keeping the part identification number unchanged. That move, according to GM's internal report, kept the switch issue hidden while sidelining the auto maker's ability to detect the problem sooner.

More Industry

Foreign Cars Italia dealership store in front of sunset
Industryby Hannah MitchellJuly 2, 2026

Luxe N.C. Dealerships Change Hands

A collection of Italian and English brand franchises were handed off to the owner’s friend in the business and include the Carolinas’ only Ferrari retail stores.

Read More →
inside of car, person with hands on black steering wheel
Industryby Lauren LawrenceJuly 2, 2026

Exposure Drives Interest in Chinese Cars

At a recent demonstration, consumers had the chance to ride in a Chinese-branded vehicle, a firsthand experience that improved their perceptions and purchase intent.

Read More →
Woman's hands holding an wallet empty of cash
Industryby Hannah MitchellJuly 1, 2026

Automotive Consumers Sink Further in Debt

Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.

Read More →
Ad Loading...
Rob Mancuso sitting in a chair on stage
Industryby Hannah MitchellJuly 1, 2026

Agent Advocate

Rob Mancuso, who comes from a long line of auto dealers, values general agents’ place in the industry and makes a case for them taking an even bigger seat at the table.

Read More →
Photo of a touchscreen on a car's dashboard
Industryby Hannah MitchellJune 25, 2026

Driving Under Distraction

Though consumers gave higher marks to new vehicles in JD Power’s most recent initial-quality poll, high-tech interference worsened, pointing to craving for simplicity.

Read More →
split background green and blue. 2019 to 2025 with car going from starting location to end point. $37,310 and $48,402. Agent Entrepreneur logo
Industryby Lauren LawrenceJune 25, 2026

Affordable New Cars a Thing of the Past

More than one out of five new vehicles sell for more than $60,000, according to Edmunds. That's up 7% compared to prepandemic 2019.

Read More →
Ad Loading...
Photo of multiple new SUVs on a car dealership lot
Industryby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Ad Loading...
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Ad Loading...