General Motors 2014 Annual Report Download - page 39

GENERAL MOTORS COMPANY AND SUBSIDIARIES
our recall processes. Pursuant to the investigation a report was provided to us in the three months ended June 30, 2014. The investigation
report made a series of recommendations in eight major areas. We intend to act or have acted on each of the recommendations. After
reviewing the investigation report, we made a number of personnel decisions. Fifteen individuals identified in the investigation report are
no longer with the Company. Five additional individuals were disciplined. Prior to the receipt of the investigation report we began the
process of adding over 100 new safety investigators and related specialists in North America alone allowing us to bolster capacity and
capability in identifying potential emerging issues and conducting product investigations, launched a Speak Up for Safety program
encouraging employees to report potential safety issues quickly and restructured the safety decision-making process to raise safety issues to
the highest levels of the Company. These measures are in addition to our creation and appointment of a new Global Vice President of
Vehicle Safety responsible for the safety development of our vehicle systems, confirmation and validation of safety performance, as well
as post-sale safety activities, including recalls and the creation of a new Global Product Integrity organization within Global Product
Development with the goal of executing the highest levels of safety performance across all of our vehicles.
Enhancements have also been incorporated through an ongoing process of continuous improvement into the Safety and Field
Investigation process to facilitate consistency in post-decision customer actions. Improved investigative and consumer facing
processes and standards are also being implemented globally to facilitate rapid and efficient sharing of information across regional
teams and markets to aid decision making. Another estimated 100 technical resources have been added globally in support of the
revised alignment and process.
We are also actively engaging customers and servicing vehicles affected by the Ignition Switch Recall. We notified affected
customers to schedule an appointment with their dealers as replacement parts are available. We began repairing vehicles in early April
using parts that have undergone end-of-line quality inspection for performance of six critical operating parameters. We have produced
sufficient parts to have the ability to repair all vehicles impacted by the ignition switch and ignition cylinder recalls. Through
January 30, 2015 we have repaired approximately 59% of the 2.6 million vehicles subject to recall.
As a result of the Ignition Switch Recall senior leadership initiated a comprehensive review and engineering analysis to identify any
additional issues which could potentially result in safety or satisfaction concerns for our customers. As part of our normal process and
as a result of these reviews we announced the following additional recall campaigns in 2014:
• In the three months ended March 31, 2014 approximately 1.9 million vehicles were recalled to replace either the power
steering motor, the steering column, the power steering motor control unit or a combination of the steering column and the
power steering motor control unit as the electric power steering could fail under certain circumstances — model years 2004–
2006, 2008–2009 Chevrolet Malibu, model years 2004–2006 Malibu Maxx, model years 2006–2010 HHR, model years 2005–
2010 Cobalt, model years 2008–2009 Saturn Aura, model years 2003–2007 ION, model years 2007–2010 Pontiac G5, model
years 2005–2006, 2008–2009 G6 and model years 2005–2006 Pursuit and G4. We recorded approximately $340 million in
Automotive cost of sales to repair these vehicles.
• In the three months ended March 31, 2014 approximately 1.3 million vehicles were recalled that are prone to non-deployment
of the side impact restraints if vehicles are not serviced when the Service Air Bag warning light is illuminated — model years
2008–2013 Buick Enclave and GMC Acadia, model years 2009–2013 Chevrolet Traverse and model years 2008–2010 Saturn
Outlook. We recorded approximately $185 million in Automotive cost of sales to repair these vehicles.
• In the three months ended June 30, 2014 approximately 2.7 million vehicles were recalled to modify the brake lamp wiring
harness that could have corrosion develop due to micro-vibration — model years 2004–2012 Chevrolet Malibu, model years
2004–2007 Malibu Maxx, model years 2005–2010 Pontiac G6 and model years 2007–2010 Saturn Aura. We recorded
approximately $90 million in Automotive cost of sales to repair these vehicles.
• In the three months ended June 30, 2014 approximately 1.5 million vehicles were recalled to replace front safety lap belt cables
that could fatigue and separate over time — model years 2009–2014 Buick Enclave, Chevrolet Traverse, GMC Acadia and model
years 2009–2010 Saturn Outlook. We recorded approximately $80 million in Automotive cost of sales to repair these vehicles.
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