Jul 17, 2014|
Automatically Generated Transcript (may not be 100% accurate)
We're now in touch with Jeff Gilbert this morning he covers the auto industry for CBS. Joining us on the WB -- line line is GM's CEO and top lawyer are back and Capitol Hill today Jeff good morning. This -- to be all about when the auto maker knew of the ignition switch problems. Yeah and who and what Arlen Specter -- a lawyer said. He would never informed of this and -- known about it he would have. Gotten into the right people right away and it would order a recall or earlier so you'd like -- on that topic some of the senators. It said quite frankly they don't police ceremonies says that it expects somebody in a position. Did note that both you see you're very horrible likely yeah. Stand behind her top lawyer -- well in hand orders for the -- a lot of back and forth as we haven't read -- actions that are terrible war. Jeff can you recall any time on the recent history of General Motors from the company was this -- damage control. No but today is apparently occurred concurrent of their record fall because certain. And all things -- or time ago and in many cases people who are no longer with the company may have been fired. In the recent two week because -- deals that are all that the federal courts are at a bank like that. So -- -- difficulties with people out there defending the action. People who will really terrible for the. What the consequence today face besides a fine. Well -- -- -- it's a big consequence there and it could be a big one because Toyota. Agreed to a one point two billion dollar foreign in -- investigate what the Justice Department. And this is grown to be an even larger situation -- Toyota dictates that -- so based being got. Penalty not penalties but big settlement and court to what they're voluntary compensation are. Some analysts say that the total bill could top five billion dollars by the well. Jeff I happen to own true of the older cars. That have been mentioned and this big ignition switch recall now both of the cars are previously owned. The settlement let me from being officially notified to bring these cars and for a -- -- or do what to do than a mile. Well they are supposed to corrected down but the system is not always perfect so obviously you have a vehicle like that. Not receive -- part of the best thing to do. Is contact -- local dealer. Today now. You know how many people will participate in the recall. That's an interesting question because. In general about 70% of people actually think -- vehicle ever recall. But a lot of experts are -- -- -- so I re open it would set a record recalls this year. In the year currently apple that people are getting recalled the in the actual final number. May be less than that he mentioned quickly called it and so much heard about it probably going to be. Up there but other recalls mean if if it's becoming like the boy -- quite well I think they're going to be a lot of people who are on the out of the barrel. Well he'll get around -- There's just something they could take years before we stop hearing about the. You know it it's probably gonna start winding down because. GM has pretty much -- we expect global vehicle -- and ordered most of their recalled the -- court order. But we're certainly getting hear more about it in the coming months -- export and import the compensation. And there are other court cases that organ here and the Justice Department investigation Toyota took four years. So oblige your question is yes. Have sales taken a hit. From the recall. Really believe that GM fail are written on a daily selling baste it every month last -- -- -- good at that it would now. Compensate for the number date for the month and have a lot of experts state that because. People and in many cases don't necessarily have that your -- the or Cadillac would you know a large corporation. The other ritual court here is that that recalled -- all over vehicle. And it kind of and our waste some dealer probably the recalled helping them because people global vehicle -- in the dealership to get prepared. And they see how much nicer than newer vehicles are they major -- that. We have to get them in the showroom he Geoff thanks for the update. Thanks for the call that's Jeff Gilbert he covers the auto industry for CBS in Detroit.