GM Recall Probe Finds “Pattern of Incompetence and Neglect”

General Motors Co.'s long-awaited analysis of its decade-long delay in recalling cars linked to 13 fatalities finds a deep and fundamental failure to meet the basic needs of customers, says CEO Mary Barra.

The report describes what Barra calls a "pattern of incompetence and neglect" marked by individuals who repeatedly failed to disclose critical information about the flawed ignition switch used in the 2.6 million recalled vehicles.

The defect can turn off the engine and thus disable the vehicle's power steering, power brakes and airbags. GM has so far repaired 113,000 of the recalled cars.

GM says that until it ordered a safety recall last February it considered the flaw a customer satisfaction rather than safety issue. Thus the company insists its 11-year delay in fixing the switch never hinged on a decision between cost and safety.

The three-month internal investigation was conducted by former U.S. Dept. of Justice investigator Anton Valukas and presented to GM's board on Monday. GM forwarded the report to the National Highway Traffic Safety Administration early Thursday morning.

Barra says Valukas's team interviewed more than 230 current and former company employees and third-party executives and reviewed 41 million documents. The latter statistic indicates the team checked an average of more than 300 documents per minute over the past three months.

Barra says the probe cleared GM's top management of fault and found no evidence of a conspiracy to avoid an earlier recall. Instead, she says, the report highlights a "history of failures" with a pattern of management deficiency and misjudgment based on insufficient information and rooted in a "business as usual" attitude.

GM says it has dismissed 15 employees more than half at executive levels for misconduct or incompetency. It has taken undisclosed disciplinary action against five other employees described as one level removed from decision making.

The company refused to identify anyone in the group by name. But Barra says two employees had previously been put on administrative leave. The company announced in April it had put two engineers on paid leave: Ray DeGiorgio, who led the group that designed the defective switch, and Gary Altman, head of the engineering team for the recalled Chevrolet Cobalt who rejected proposed redesigns for the switch.