Speaking to CNBC‘s Phil LeBeau in an interview at the Intelligent Transport System (ITS) summit, GM CEO Mary Barra noted that the company has made significant progress toward its goal of identifying safety problems in existing models.
“As we look to the past, we’re substantially complete,” she said. “If we find issues, we will address it.”
The comments appear to explain why August was a quiet month for GM recalls, after averaging dozens of new campaigns each month since February. Overall, the company identified problems in nearly 30 million vehicles. Some of the campaigns were related to newer models, but most focused on discontinued vehicles that were designed and built before bankruptcy reorganization.
“The most important thing we’re doing is in the product integrity organization — making sure we create defect-free vehicles,” Barra added.
GM has been accused of cutting corners in past years, prioritizing profit margins ahead of safety. The company is now paying to resolve past engineering deficiencies, reducing second-quarter earnings by $1.3 billion in recall repair costs. Settlements with accident victims are expected to total at least $400 million, while federal and state penalties could eventually add billions to the final price tag.
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