Executive Summary ? One to two paragraphs in length 1. On cover page of the report ?
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Executive Summary ? One to two paragraphs in length
1. On cover page of the report ? Briefly identify the major problems facing the manager/key person.
2. Summarize the recommended plan of action and include a brief justification of the recommended plan.
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CASE 490 SIX General Motors and the Ignition Switch Recalls In November 2004, Candice Anderson was driving her boyfriend, Gene Erickson, to pick up his car when her Saturn Ion swerved off the road at a slight curve and hit a tree, killing her passenger. The couple was not wearing seat belts, and the air bags did not deploy. The Texas State Police found traces of an antianxiety medication in Anderson's system, and she was fined and charged with criminally negligent homicide. Over the next 10 years, Anderson constantly relived the nightmare and wondered how she lost control on such an easy curve. On a cloudy Wisconsin night in October 2006, Megan Ungar-Kerns was driving with her friends Amy Rademaker and Natasha Weigel in a 2005 Chevy Cobalt. The vehicle sud- denly lost and veered off the road into a utility pole and several trees. The air bags failed to operate, the driver was seriously injured, and both passengers died on the spot. The state police report noted that at the time of the crash the key was in "accessory" mode. Brooke Melton was driving in Georgia on a rainy March evening in 2010. It was her 29th birthday. Her 2005 Chevy Cobalt suddenly stalled, slid into an oncoming vehicle, rolled, and dropped 15 feet into a creek. Melton was wearing her seat belt, but the air bags did not operate and she died on the way to the hospital. Police recorded driving too fast for conditions as the cause of the accident; she was going 58 mph in a 55 mph zone. These tragic accidents had little in common except for three commonalities: in all of these cases (and, as it turned out, dozens more like them), the driver had for some reason. lost control of the car, the built-in air bag protection systems had failed to deploy-and the vehicles were made by General Motors (GM). In February 2014, nearly a decade after Gene Erickson died, GM began a series of recalls that eventually affected 2.6 million vehicles whose model years ranged from 2003 to 2011. The reason for the recalls was a faulty ignition switch that easily shifted the key from "run" into the "off" or "accessory" positions. When the key was not in "run," the cars lost power, including to the steering, braking, and protective air bag systems. This reduced the driver's control and increased the risk of injury in the event of an accident. In addition to facing individual and class action lawsuits, the company was under investigation by the National Highway Traffic Safety Administration (NHTSA), the U.S. Congress, and the By Debra M. Staab and Anne T. Lawrence. Copyright © 2015 by the authors. All rights reserved. The authors developed this case for class discussion rather than to illustrate effective or ineffective handling of the situation. Materials in this case are drawn from testimony at the hearings on the GM ignition switch recall held by the Energy & Commerce Committee, Subcom- mittee on Oversight and Investigations, on April 1, 2014, and June 18, 2014; the GM study known as The Valukas Report; the General Motors website; the House of Representatives Committee on Energy and Commerce Staff Report on the GM Ignition Switch Recall: Review of NHTSA; and from articles in The New York Times, The Wall Street Journal, Automotive News, About.com, NewWorldEncyclopedia.org, Bloomberg.com, gmignitioncompensation.com, nationallowjournal.com, fortune. com, money.cnn.com, Nasdog.com; and the NHTSA Recall Database. A full list of references appears in the instructor's manual that accompanies this book. CASE 490 SIX General Motors and the Ignition Switch Recalls In November 2004, Candice Anderson was driving her boyfriend, Gene Erickson, to pick up his car when her Saturn Ion swerved off the road at a slight curve and hit a tree, killing her passenger. The couple was not wearing seat belts, and the air bags did not deploy. The Texas State Police found traces of an antianxiety medication in Anderson's system, and she was fined and charged with criminally negligent homicide. Over the next 10 years, Anderson constantly relived the nightmare and wondered how she lost control on such an easy curve. On a cloudy Wisconsin night in October 2006, Megan Ungar-Kerns was driving with her friends Amy Rademaker and Natasha Weigel in a 2005 Chevy Cobalt. The vehicle sud- denly lost and veered off the road into a utility pole and several trees. The air bags failed to operate, the driver was seriously injured, and both passengers died on the spot. The state police report noted that at the time of the crash the key was in "accessory" mode. Brooke Melton was driving in Georgia on a rainy March evening in 2010. It was her 29th birthday. Her 2005 Chevy Cobalt suddenly stalled, slid into an oncoming vehicle, rolled, and dropped 15 feet into a creek. Melton was wearing her seat belt, but the air bags did not operate and she died on the way to the hospital. Police recorded driving too fast for conditions as the cause of the accident; she was going 58 mph in a 55 mph zone. These tragic accidents had little in common except for three commonalities: in all of these cases (and, as it turned out, dozens more like them), the driver had for some reason. lost control of the car, the built-in air bag protection systems had failed to deploy-and the vehicles were made by General Motors (GM). In February 2014, nearly a decade after Gene Erickson died, GM began a series of recalls that eventually affected 2.6 million vehicles whose model years ranged from 2003 to 2011. The reason for the recalls was a faulty ignition switch that easily shifted the key from "run" into the "off" or "accessory" positions. When the key was not in "run," the cars lost power, including to the steering, braking, and protective air bag systems. This reduced the driver's control and increased the risk of injury in the event of an accident. In addition to facing individual and class action lawsuits, the company was under investigation by the National Highway Traffic Safety Administration (NHTSA), the U.S. Congress, and the By Debra M. Staab and Anne T. Lawrence. Copyright © 2015 by the authors. All rights reserved. The authors developed this case for class discussion rather than to illustrate effective or ineffective handling of the situation. Materials in this case are drawn from testimony at the hearings on the GM ignition switch recall held by the Energy & Commerce Committee, Subcom- mittee on Oversight and Investigations, on April 1, 2014, and June 18, 2014; the GM study known as The Valukas Report; the General Motors website; the House of Representatives Committee on Energy and Commerce Staff Report on the GM Ignition Switch Recall: Review of NHTSA; and from articles in The New York Times, The Wall Street Journal, Automotive News, About.com, NewWorldEncyclopedia.org, Bloomberg.com, gmignitioncompensation.com, nationallowjournal.com, fortune. com, money.cnn.com, Nasdog.com; and the NHTSA Recall Database. A full list of references appears in the instructor's manual that accompanies this book.
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Answer Executive Summary Major Problems General Motors GM faces significant challenges stemming from the ignition switch defects in their vehicles whi... View the full answer
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