Report: GM reforming legal department to streamline recall process

General Motors is reportedly reforming its legal department as part of its wider safety-focused reorganization.

Although GM’s own attorneys are likely playing a key role in guiding the response to the ongoing legal crisis, internal counsel also faces blame for its contribution to a corporate ethos that has been derisively described as a “culture of cover up.”

Documents highlighted in the National Highway Traffic Safety Administration’s recent consent order suggest GM counsel may have been going too far in its quest to minimize legal liability. An presentation for employees, presumably crafted with the help of GM counsel, ordered staff to avoid using dozens of terms such as ‘dangerous,’ ‘serious’ and ‘safety related’ in internal reports and correspondence.

In its agreement with the NHTSA, which arrived alongside a $35 million fine, GM agreed to “expressly disavow” any of the statements in the internal presentation that were apparently aimed at “diluting the safety message” of observations included in reports.

GM counsel Michael Millikin has reportedly assigned a legal adviser to collaborate directly with the engineering departments to make sure information regarding potential safety defects is quickly distributed across all divisions responsible for the reaction, unnamed sources have told Bloomberg.

A handful of executives and engineers appear to have been ousted amid an ongoing investigation into the ignition-switch recall, however GM insiders have claimed that a culture of extreme penny-pinching had been enforced throughout the ranks for decades. The comments suggest the automaker may face a much bigger task than simply removing a few ‘bad apples.’

The latest report also sheds more light on the responsibilities of outside attorneys that were hired within weeks of the ignition-switch announcement. Former federal prosecutor Anton Valukas was tasked with leading a group of internal and third-party attorneys to complete an investigation into the matter.

Valukas is better known for his role examining the Lehman Brothers bankruptcy in 2009. His 2,200-page report explained how the investment firm’s internal policies contributed to its downfall during the financial crisis of the time.

Millikin — a 37-year veteran at GM — reportedly expects the high-level shakeup to continue as the attorneys complete the internal investigation and GM continues to reevaluate its leadership.