Giant Corporations, Giant Failures

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http://www.truth-out.org/news/item/24615-giant-corporations-giant-failures



Giant Corporations, Giant Failures
Saturday, 05 July 2014 10:33
By Richard D Wolff, Truthout | News Analysis

General Motors recently released the report it commissioned from the huge Jenner & Block law firm. The latter's chairman, Anton Valukas, investigated how and why GM failed - for over 10 years - to recall cars it produced while knowing they had defective ignition switches. The eventual recall of 2.6 million Chevrolet Cobalt cars in February, 2014, followed 13 deaths GM linked to those defective switches (many others were injured, and government officials believe there were more fatalities).

GM's chief executive, Mary Barra, admitted publicly this April what Valukas wrote in his report: GM failed systematically to identify, take responsibility for, and act properly in the face of life-threatening defects in millions of automobiles it sold since 2002. On June 16, 2014, GM recalled an additional 3.16 million defective vehicles across seven of its models. GM's total recalls in North America so far this year exceed 20 million vehicles.

Lessons from so major a failure go far beyond GM leaders promising to fix their internal operations. As the Valukas report documents, many layers of the GM bureaucracy routinely ignored evidence of defective ignition switches and their risks to customers' lives. None of thousands of engineers and executives - even those who had recognized the problem or mentioned it to other GM officials - was able or willing to achieve the recall decision until 2014. Chief executive Barra attributed this failure to a "pattern of incompetence and neglect." Five years ago, GM announced another failure, its own bankruptcy, and got the US government to bail it out with $ 49.5 billion in taxpayers' money. We paid collectively to save a corporation whose chief describes its activities in terms of a "pattern of incompetence and neglect."

Despite such catastrophic failures over the past decade, we permit, and indeed subsidize, the continued operation of GM by the same bureaucracy. To date, a total of 15 engineers and other employees have been dismissed from GM for failures related to the faulty ignition switch. No one was fired because of any explicit responsibility for bankruptcy. GM had a total of 219,000 employees as of 2013.

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1. K&R....