Stung by the backlash in the wake of an ignition switch recall linked to at least 12 deaths, General Motors is struggling to convince consumers – never mind federal regulators – that it is serious about improving its handling of safety problems.
A day after CEO Mary Barra issued another apology of the ignition switch fiasco, the chief executive has appointed a corporate safety czar to oversee future issues. The move echoes steps taken by rival Toyota Motor Co. which was embroiled in its own safety crisis four years ago.
Jeff Boyer will immediately assume the newly created position of Vice President, Global Vehicle Safety. In that position, he will be the single executive overseeing all safety-related issued, according to a statement from CEO Barra, who said, “Jeff’s appointment provides direct and ongoing access to GM leadership and the Board of Directors on critical customer safety issues.”
The announcement came a little over a month after GM announced it was recalling 800,000 compact models due to a problem with an ignition switch that could inadvertently move from the On to Off or ACC position. If that happened, a vehicle’s engine could stall out and its airbag system would be disabled. GM doubled the total to 1.6 million vehicles when it expanded the recall two weeks later.
According to the maker, the switch problem has been linked to at least 12 deaths and 31 crashes.
Critics, ranging from House Energy Committee Chairman Fred Upton to former National Highway Traffic Safety Administration Director Joan Claybrook, have sharply criticized GM’s slow response to a problem it first was made aware of during pre-production testing of the Saturn Ion model in 2001. Company officials have acknowledged their recall process has not been as “robust” as necessary. Barra has said she is personally overseeing an in-house investigation, and is promising changes that apparently begin with the appointment of Safety Czar Boyer.
Whether that will satisfy critics remains to be seen. GM is facing separate investigations by both the House and Senate, as well as NHTSA, and the U.S. Justice Department has begun a preliminary criminal investigation.
Meanwhile, the maker has said it expects to take at least a $300 million hit to its first quarter earnings as a result of the ignition switch recall and three other safety service actions announced this week.
With her own reputation on the line, Barra clearly wants to show that such problems will not happen again.
“This new role elevates and integrates our safety process under a single leader so we can set a new standard for customer safety with more rigorous accountability,” the new CEO said in her statement. “If there are any obstacles in his way, Jeff has the authority to clear them. If he needs any additional resources, he will get them.”
Boyer will provide direct updates to Barra, senior management and the GM Board of Directors on a regular basis, the company noted.
Boyer began his GM career in 1974. Since 2001 he was Executive Director of Engineering Operations and Systems Development. Before that, Boyer served as Executive Director of Global Interior Engineering and Safety Performance where he was responsible for the performance and certification of GM vehicle safety and crashworthiness.
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Boyer’s new position mirrors the move Toyota made in 2010 when it appointed a “global safety czar” to deal with the issues surrounding the company’s unintended acceleration crisis. The Japanese maker ultimately was forced to recall more than 10 million vehicles in the U.S. alone due to a series of problems that included a sticky accelerator assembly.
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In April 2011, Toyota appointed Moritaka Yoshida, a former Lexus LS chief engineer, to be its chief safety technology officer. His task was to restore the company’s reputation as a safety leader.
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What followed was a series of recalls involving more than 15 million vehicles around the world, a series of record fines from the U.S. government and a $1.6 billion settlement related to the unintended acceleration recall.
Toyota has slowly been regaining its perceived image as a safety leader. GM is hoping that it will be able to do the same by getting a grip on the ignition switch crisis as quickly as possible.
(Paul A. Eisenstein contributed to this report.)
