CASE STUDY

Direction. Read, understand each statement, and answer them using your own words. Rubrics will be used for marking your output. Your answers will be subjected to plagiarism. Similarity index should be less than 20%.

Case Synopsis:

In early 2014, GM ordered 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 position. When the key was not in run, the cars lost power, including to the steering, brakes and protective airbag system, increasing the risk of injury in the event of an accident. The ignition switch defect directly caused the airbag system to fail, which was a violation of federal safety regulations. For over a decade, GM insisted that a moving stall did not compromise safety and did not take adequate action to resolve the problem with the ignition switch. At the time the case ends in 2014 the company faced numerous individual and class action lawsuits and investigations by the National Highway Traffic Safety Administration (NHTSA), the U.S. Congress, and the Justice Department. This case allows students to explore who or what was responsible for deaths and injuries caused by the faulty ignition switch, and to debate what actions General Motors, government regulators and policy makers, and consumers themselves took to assure the safety of automobile drivers and passengers.

1.What would you do as a GM employee who had witnessed safety issues? If your manager told you to ignore the problem, would you go outside the company to blow the whistle? What might be the cost of keeping silent? (5 marks)

2. If you were the CEO of General Motors, what changes would you implement to avoid similar problems from arising in the future? (5 marks)