GM failed to disclose defective ignition switches…for a decade. GM’s handling of the ignition switches is reminiscent of Ford’s Pinto in the 1970’s…known about for a decade, yet rejected a fix due to a “tooling cost” deemed too high.
GM’s faulty product has been linked to 13 deaths. Finally, in 2014, 15 million vehicles were recalled. Federal investigators gave a record $35M fine for GM’s handling of the defect. During the investigation, they found a list of banned words internal safety inspection employees could not use in written reports documenting potential vehicle-safety issues. A few of the 68 were: safety, problem, defect, dangerous, horrific.
Why? Their use could later be construed as a legal admission of wrongdoing (Source: Associated Press).
Does your company proactively cover up issues?
