GM Faulty Ignition Switch Recall

New GM CEO Mary Barra to sit before House subcommittee.
3:00 | 03/31/14

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Transcript for GM Faulty Ignition Switch Recall
-- -- company -- has the financial markets are coming to a close. This Monday march 31 this story stock and today we are looking at auto giant general motors' year after year GM is. Been one of the world's top sellers of cars and trucks with headlines this week from GM aren't going to be about sales. -- want to bring in Rick Newman for -- -- talk about with the big headline is tomorrow the new GM CEO Mary Barry she's beginning to the days of congressional testimony about. How the company handled perhaps mishandled the recall cars. With a faulty ignition switch and Rick this has really gotten. Quite a large a lot of attention. Yeah and it's getting bigger and bigger GM initiated the first recalls at the beginning of February and has expanded them twice so we're now talking about two point six million vehicles mostly built between 2003 and 2007. That have have these -- could have these faulty ignition switches -- them. And GM has said they've been able to identify at least thirteen deaths. In about thirty crashes. That -- duty these switches and the the most troubling thing about this stand is that internal GM documents show that GM engineers knew about this problem. Years ago and they -- decided that there was not a business case that's the phrase that pops up in these documents for pitching. So GM basically concluded. That. It wasn't worth. -- safeguarding its customers' lives. By spending you know the amount of money it -- cost which would've even been that much so. That is what the new CEO Mary -- is gonna have to explain during the next two days of congressional testimony. There's been a lot of dialogue between trying to differentiate between the old GM that is GM before file for bankruptcy and the new GM. What does she have to do that to -- where she sits before the house subcommittee. Y I you you please put your finger on it -- she has to explain -- Is GM actually knew or could this sort sort of mentality still exist within the company and its you know a lot has changed -- GM -- They rode off a lot of debt they've been now been through four CEOs since they declared bankruptcy in 2009. But most of the people who work at GM now are the same people who work there five years ago. So I it -- distraction and say what is really different there are you know that they are turning out better cars. But the -- she what she for GM stake she needs to make it clear that this could never happen at GM today. Because if if she doesn't think it would show why what I -- GM car if they could if there could be these types of problems number one -- my -- mother tell me about it. -- a look at how the -- been -- for the past two days there life here's a statistics from General Motors. Or there's the stocks right there witnesses is that -- response over the past two days from investors. How closely is Wall Street going to be watching than what she's gonna say before these before the subcommittee members the -- the stock. Hasn't crashed it has sort of it actually rose a little bit right after the first recall was announced because it appeared that GM had its arms around the problem was -- was doing something aggressive to fix it. But it has fallen since since the recall has expanded to do wants -- -- twice I think what investors really want to know is where's the bottom line this. What what else are we gonna find out about. You know what -- white analysts and investors mostly worry about is not -- amount of money this might cost GM. In terms of settlements or anything like that they have already been a lot of settlements are -- What -- what the real worry is. How much is going to impact GM's future sales if today's car buyers start to think you know. I'd I'd I'd I shouldn't trust them after all they're no better than they used to be I can't -- -- -- or maybe they don't even distinguish between the -- that GM and the -- -- they just feel like they've heard somewhere that GM builds dangerous cars. So. The best thing that GM can do is put an end of this as quick as possible because the drip drip drip. It just sort of seeps into consumers' consciousness over time so they really want you know they need to draw on -- and -- conclusion here as quickly as they can't what. But the fact that did marry -- went on an integrated video X essentially explaining the situation. Almost humanizing of the position was that Smart as -- tried to make this differentiation between -- as we're talking. Between GM pre bankruptcy and now post and turning a profit. I think. It is Smart that was a video made for internal GMU spite of -- broadcast internally but then GM did make that available publicly. And GM is doing. I mean they're following the the rule book if you will for how to handle a crisis well which is. Don't you know don't hide any thing. Don't assembled don't get into you know don't get caught trying to be too clever they seem to have been. Coming out and acknowledging everything they find out as they find it out. So if that's the -- continues and GM can identify. It's sort of come up with actions that put an end to this and account for whatever trouble they -- with the with them with the cars. Then I think they will have done a pretty good job and -- in particular will done a good job. Of you know saying look this was in the past we deeply regret it. But it was -- -- -- it's a different company now well if it's this drip drip drip problem that they have to deal with and they have to they have to get everything on the table as quickly as they can't get it over with. And perhaps probably -- -- of that on the table as quickly as they can -- regular from Yahoo! finance Rick thanks much -- appreciated -- Syria and of course will be covering -- bears testimony tomorrow afternoon live on ABC news digital expected to start around 2 PM eastern time. For -- -- even watch -- story stocks it with for latest headlines. And -- -- and New York.

This transcript has been automatically generated and may not be 100% accurate.

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