03/31/2014
General Motors: Lawsuits pile up over deadly defect
General Motors is being sued in Minnesota on behalf of three teenage girls who were severely injured or killed in a 2006 crash involving a 2005 Chevy Cobalt, one of the GM models recalled over ignition problems. GM announced the recall of 1.6 million vehicles in February, despite first learning of problems with ignition switches in 2001. GM is protected from lawsuits over accidents that occurred before the automaker was reorganized in a 2009 bankruptcy.
■Class discussion: Should the so-called new GM be held liable for accidents before 2009? Why or why not? Could families sue former and present GM executives for failing to fix the ignition problem? Why do corporate executives very rarely face criminal charges? Some argue that executives would be scared to innovate if they faced greater penalties. Do you agree? How would you hold corporations and executives responsible for misdeeds?