Final For Be Essay

1032 words - 5 pages

The original issue in the GM ignition scandal, or “Switchgate” as author Fraser Seitel names it, was with 780,000 Chevrolet Cobalts and Pontiac G5’s on February 14th. These cars had an ignition system that would fluctuate the amperage, either allowing the correct amount of electricity to the airbags and ABS systems or shut them off completely. Basically, the ignition would pull down if a key ring had many store membership cards or key fobs on it or if a divot was struck with a front wheel. The three outcomes postulated are ABS power loss, airbag power loss, or even electrical loss of everything. Approximately thirteen deaths and twenty-two accidents have had ignition failure of some variety, ...view middle of the document...

New York Times also has reported on April second that a 2005 emailed captured and analyzed by author Rana Foroohar (author of this article) elicited that “it would cost the company 90 cents per switch” so GM chose to pick the short straw with the vibrating ignitions (Foroohar, np).
Lastly, it has also been recorded that Ray DeGiorgio and Gary Altman, the ignition foremen during the production, have been severed from the engineering department of GM. Apparently, two separate miscalculations by both individuals had occurred. DeGiorgie apparently cut his teeth at GM with the Chevy Cobalt and Saturn Ion ignition that would additionally “slide” the key from the ignition (Aljazeera America, np). DeGiorgie as well as Altman apparently were handlers of the 2005 email stated above. Altman new of the email, and DeGiorgie was the individual that bypassed changing the ignition serial number after adjustments had been made by the engineering department of GM. In greater detail, DeGiorgie created the faulty ignition and approved a redesign in 2006, but never changed the part number or gave the redesign to vehicles beginning in 2003. It can also be inferred that DeGiorgie’s approval of the redesign did not fix the entire ignition problem, perhaps just the key “sliding out” minutes after insertion. Each individual has been subjected to depositions and court filings recently in the GM ignition scandal (Aljazeera America, np). Additionally, it has been statistically recorded that GM investigated four fatal crashes, 29 complaints, and 14 other issues in the first decade of the 2000s (Dominic Rushe, np).
Stakeholders
The stakeholders of the ignition scandal include GM, the owners of Pontiac G5’s and Chevrolet Cobalts (as well as the monthly list of new models), the shareholders, Ray Degiorgio, Gary Altman, and the CEOs, current and pre-bailout. Of these stakeholders, the ones that should be explained are the shareholders and CEO’s. As will be mentioned twice following this paragraph, GM will increase variable costs and reduce contribution margin by $300 million dollars in the first three months of this year, which...

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