GM sends two engineers on paid leave over vehicle recalls

General Motors CEO Mary Barra said yesterday that she had sent two GM engineers on paid leave pending an internal investigation, over the faulty ignition switches that led to the recall of 2.62 million vehicles worldwide, USA Today reported.

The defect had caused 31 crashes and 12 deaths in the US and a fatal crash in Canada.

This comes as the auto major's first action against employees involved in the events that led to cars being sold with switches that could shift out of the "run." position. In the position, the engine is switched off, power assist for the steering and brakes is eliminated and brakes are disabled.

Earlier this month, GM admitted before a Congress panel that company officials knew of their cars' potentially deadly ignition switches for years, but failed to correct the problem (See: GM apologises to US House, public for faulty cars).

On 1 April and 2 April US House and Senate subcommittees criticised Barra for failing to fire or initiate disclipinary action against  anyone. 
GM's chief executive Mary Barra had apologised and said the automaker had a "civic responsibility" to make things right.
She added she was awaiting results from an internal investigation.

The manufacturer is under fire for not recalling Chevrolet Cobalts, Saturn Ions and other GM models over the past decade, despite its own evidence that the defects were posing a major hazard.

According to GM's announcement yesterday the suspensions were based on an interim briefing on the probe, which was being conducted for GM by former US attorney Anton Valukas.

In a separate communication, GM confirmed it had asked NASA to verify that the recalled cars could be safely driven if drivers used only the key, with nothing attached.

GM also said yesterday it would take a higher-than-expected charge of $1.3 billion in the first quarter, mainly towards the cost of recall-related repairs and courtesy transportation, as against the earlier announced $750-million charge.

The report added, the automaker said US dealers, in addition to replacement of ignition switches on the recalled cars, would replace ignition lock cylinders as ignition keys could be removed with the engine running.

GM said it was aware of "several hundred complaints" of keys coming out of the ignition on the recalled cars. There was also a rollaway incident and crash that led one injury, but no reported fatalities.

Reuters confirmed in a report that the engineers sent on leave were Ray DeGiorgio and Gary Altman.

The original switch was designed for the 2003 Saturn Ion by Degiorgio that went into production in August 2002. Versions of the switch came to be used in other GM models, which included the Chevrolet Cobalt, also part of the global recall.

Barra, an auto engineer, who became the first CEO of a global auto giant in December 2013, has had to face one f the worst recalls in GM's over eight decade history See: GM names Mary Barra as first woman CEO).