Skip to main content

10 key events in GM’s ignition switch recall

By The Associated Press (AP) — General Motors is the subject of multiple government investigations and civil lawsuits for taking more than a decade to recall 2.6 million cars with a deadly ignition switch defect. On Thursday, GM CEO Mary Barra appeared for the second time before a U.S. Senate subcommittee to discuss the company’s internal investigation into the recall.

Here are 10 key events in the recall saga:

February 2002: GM switch engineer Ray DeGiorgio approves the design of a new small-car ignition switch, even though Delphi, the supplier, says the switch doesn’t meet GM’s specifications. The switch goes into the Saturn Ion in late 2002. Later, it’s used for the Chevrolet Cobalt, Pontiac G5, Chevrolet HHR, Pontiac Solstice and Saturn Sky.

July 29, 2005: Amber Marie Rose, 16, dies in a frontal crash in her 2005 Chevrolet Cobalt, the first of 13 deaths GM says were caused by the defective switches. A contractor hired by NHTSA found that the Cobalt’s ignition had moved out of the “run” position and into the “accessory” position, which stalled the car and cut off power to the steering, brakes and air bags.

April 2006: DeGiorgio signs off on a redesign of the ignition switch, but doesn’t change the part number, which makes the change difficult to track later. The new switch goes into cars from the 2007 model year and later.

November 2007: The National Highway Traffic Safety Administration declines to open a formal investigation into why air bags didn’t deploy in some Cobalt and Ion crashes, saying the incidence rate doesn’t appear to be higher than peer vehicles.

April 2013: During depositions in a wrongful death case in Georgia, GM is shown evidence DeGiorgio changed the switch design. In November, GM engineers finally confirm that the design was changed.

February 2014: In two separate actions, GM recalls 1.6 million small cars to repair defective ignition switches. The recall later grows to 2.6 million cars. The company says it expects to repair all of the vehicles by October.

April 1-2 — Barra and NHTSA acting chief David Friedman testify before Congressional committees. Barra says GM has hired compensation expert Kenneth Feinberg to administer a fund to compensate victims. The fund is expected to begin taking claims on Aug. 1.

May 16 — The U.S. government fines GM a record $35 million for failing to disclose the problems more quickly. GM agrees to report safety problems faster and consents to government oversight of its safety operations.

June 6 — Barra releases a 315-page investigation into the recalls by former U.S. attorney Anton Valukas, who was hired by the company. The report concludes that engineers didn’t consider the ignition switch a safety issue for many years, and that engineering and legal staff didn’t act with any urgency to figure out or solve the problem. Barra dismisses 15 employees for their roles, including DeGiorgio.

June 30 — Compensation expert Kenneth Feinberg announces terms of his plan to compensate victims of crashes caused by GM small-car ignition switches, saying that GM has placed no limit on the total amount he can spend. GM also announced it would recall another 8.2 million vehicles for ignition switch problems dating to 1997. GM says the switches are different from the ones recalled earlier in the year. Recall total rises to 29 million for the year, including 17.1 million for ignition problems.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story