June 5, 2014 / 2:28 PM / 3 years ago

BRIEF-GM CEO Barra says part used didn't meet performance requirements, problem was misdiagnosed

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DETROIT, June 5 (Reuters) - General Motors Co CEO Mary Barra, President Dan Ammann and global product development chief Mark Reuss speaking to the media: * CEO Barra says part used didn't meet performance requirements and problem was

misdiagnosed * CEO Barra says those fired represent many functions, most in senior or

executive roles * CEO Barra says tragic set of events * CEO Barra did not address whether company would waive liability shield gained

through bankruptcy, says compensation fund program voluntary * CEO Barra says report indicates part change was not communicated inside the

company * CEO Barra says no trade-off of cost versus safety was deemed because it was

deemed to have been a customer satisfaction issue not customer safety * President Ammann says compensationfund will focus on those injured or who

lost lives, when asked whether those whose cars lost value would be inclluded * CEO Barra says two engineers on leave no longer part off company * CEO Barra says well over half of employees fired were executive level or

higher * Product development chief Reuss says his team now more integrated with legal * CEO Barra says it was not necessarily the case that employees involved in the

failure to catch bad switch had already left company * CEO Barra says has spoken with secretary of transportation and key members of

congress aboout report * GM's Reuss says report does not address whether other parts may have been

changed without the part number being changed * CEO Barra says federal government bears no responsibility in failing

to catch the problem * CEO Barra couldn't say why engineers failed to catch the problem early on * CEO Barra says those employees who left were across many departments * CEO Barra says four different departments were represented in the departures

of the 15 employees * CEO Barra says there has been a lot of strengthening done in product

development and more will be made * President Ammann says the 13 fatalities linked to bad part is what the

company knows, didn't speculate if number would rise * President Ammann says rules and eligibility of compensation fund will be set

by ken feinberg * CEO Barra says two root issues, part didn't meet performance requirements and

people at company didn't understand connection of that to the problems that

arose * CEO Barra says recall decision procedure now includes herself, ammann and

reuss * CEO Barra says company will not make names of 15 executives who have left

public * CEO Barra says cooperating fully with Department of Justice and others doing

probes * CEO Barra says general counsel Michael Millikin still employed at company * CEO Barra says has produced over 280,000 kits to repair the cars affected in

recall * CEO Barra says 113,000 cars have been repaired so far in the recall * CEO Barra says we wannt compensation program to reach everybody who lost a

loved one or was injured by bad switch * President Ammann said feinberg will decide who gets compensation independent

from company * CEO Barra says car shutting off in ther case of the cobalt was a safety issue * CEO Barra says company leadership decided who would have to leave the company

as a result of the probe * President Ammann says feinberg will determine size of compensation fund * CEO Barra says of the 15, it was incompetance or misconduct versus someone

who didn't take action * CEO Barra didn't speculate on further costs to the company related to recall * President ammann says if people opt out of compensation fund, they will have

their legal rights; declined to say whether GM would assert its liabillity

shield * CEO Barra says whether she returns to congress to testify is up to lawmakers * President ammann says objective with compensation fund is to be expeditious

as possible, feinberg will determine * CEO Barra says pieces of information and clues didn't get put together to

catch the defective switch * Product development chief Reuss says there are safeguards in place to prevent

a single engineer from changing a part without changing the part number

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