General Motors Co.'s effort to contain a safety scandal will come to a pivotal juncture as soon as this week, when former U.S. Attorney Anton Valukas releases his report on the matter, the Wall Street Journal reported today. Since February, when GM announced the first recall of vehicles equipped with faulty ignition switches now linked to at least 13 deaths, the company hasn't said who was responsible for most of the crucial decisions since 2001. GM hasn't fired anyone in connection with the defect and recall, which has cost the automaker $1.7 billion. Two low-level engineers involved with the design of the switch are on paid leave. Two senior executives have retired. (Subscription required.)
http://online.wsj.com/articles/gm-recall-seeking-answers-from-valukas-r…
In related news, a General Motors Co. dealer in Arkansas is seeking compensation for being saddled with an inventory of “highly dangerous vehicles” that includes cars not yet recalled over ignition-switch defects, Bloomberg News reported today. Nettleton Auto Sales Inc. demanded actual and punitive damages on behalf of all of the company’s U.S. dealers in a complaint filed May 23 in federal court in Little Rock, Arkansas. GM disclosed the lawsuit yesterday in U.S. Bankruptcy Court in Manhattan. GM “actively” concealed the ignition-switch defect until this year, Nettleton alleged. Detroit-based GM has recalled 2.59 million cars to repair the switches while blaming 13 deaths on the defect, which could unintentionally cut engine power and deactivate air bags.
http://www.bloomberg.com/news/print/2014-06-03/gm-dealer-demands-damage…