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Madam President, yesterday's hearing of the commerce committee's subcommittee on consumer safety provided a powerful and important moment in our legislative process, and I want to thank my colleague, the chairman of that subcommittee, Chairman McCaskill, for enabling us to come together, as well as my other colleagues on both sides of the aisle, Senators Klobuchar and Boxer and Ayotte, for their very insightful and significant questions and comments on a challenge that should unite us on both sides of the aisle--the tragic events, death and life-changing injuries to unsuspecting drivers who were victims of a defective ignition switch in automobiles manufactured by GM; a car defect that should have been fixed, disclosed, and remedied before these deaths occurred.
I want to thank the families of the victims of these defective cars for coming forward and being at that hearing yesterday and sharing their stories with me and others. They are doing a great public service through their courage and strength.
I want to also thank Mary Barra, the CEO of GM. As I said to her then, and I will repeat now, I admire her fortitude and her service in coming forward to face the questions of our committee and be the face of General Motors on the issues that confront us now in car safety. I admire her career at GM--an engineer who has risen through the ranks, a second-generation employee at an iconic, great American manufacturing company.
I have long admired that company and the products it has produced. They have enriched the lives of so many Americans over the years. My hope is this hearing and this process will be a turning point for the company in facing these car safety challenges.
I admire greatly also its dealers and employees. Some of them have contacted me, especially Connecticut dealers, telling me how they are reaching out proactively to the drivers of these defective vehicles, asking them to bring them to their company so they can be repaired before they do further damage.
This great company can reclaim its iconic brand and luster by breaking with its past, and Mary Barra has the opportunity for this historic contribution. As I said to her yesterday, she may be surrounded by a phalanx of lawyers and public relations people who will advise her to be cautious, to be timid, and to be reactive, but now is the time for her to seize the initiative and take three simple steps as a beginning.
No. 1, establish a compensation fund for all who have suffered damage from this defective ignition switch which caused cars to crash, some of them to burn--victims who have suffered injuries and death as well as economic damage. No. 2, provide a warning--a clear, strong warning--to drivers still behind the wheels of vehicles that still have this defective ignition switch.
The cars are under recall but unrepaired. People are still driving them, many not knowing the full risk they have undertaken by continuing to drive. A strong warning to ground those vehicles until they are repaired is what is needed now.
Third, support our legislation. Senator Markey and I have offered legislation that would provide for better reporting by car companies, a stronger accountability system, and better disclosure through a database to consumers so they will know what the risks are before they take them and can make informed choices about what they drive and when.
These steps are well warranted by the past misconduct of GM, but they are also potentially a model for other companies in doing the right thing--facing the truth, telling truth to power, and making sure innocent consumers are protected against harms that may not be known to them.
She had the opportunity to break with the past culture--a culture of deniability and of deception. Deception is what happened at GM. These ignition switches were known to be defective. As early as 2001, year after year there were reliable and material facts indicating to GM it had a responsibility to fix these vehicles. Yet they took no action to repair them, to recall them, to inform consumers. And the fix was not a major costly one. It was $2 per vehicle--easily done. Yet in 2005, 2006, GM made a business decision that the price was too high, the time was too long, and it continued to provide those vehicles for sale to consumers.
Then it deceived the U.S. Government. I have already spoken on the floor about section 612 of the agreement GM signed that indicated there were no material adverse facts at the time it was bailed out in 2009 as part of the reorganization. That deception is bad enough, but what happened as a result of that reorganization was a shield from liability, a form of immunity against legal accountability granted only because GM failed to disclose to the United States and to the bankruptcy court that it might well be liable and in fact was responsible for these defective vehicles. That shield from liability still bedevils the victims of injuries, death, and economic damage as they seek to hold GM accountable because GM itself is invoking that shield in courts today around the country and seeking to dismiss actions brought against it, seeking to return them to the bankruptcy court where the black hole of discharge will prevent recovery.
I welcome the independent investigation GM has undertaken by a very credible and respected former U.S. attorney. I welcome the appointment of consultant Ken Feinberg, also well respected, with experience and expertise in providing compensation. But GM itself has still said there is no compensation fund and it will not commit to one. And as able as these two individuals are, the question remains, what will it take? What facts or evidence will be required to persuade GM to do the right thing?
I think there is more than ample evidence--in fact, abundant evidence now--as to what the path should be, and I urged it yesterday on Mary Barra. GM should very simply do the right thing now: Establish a compensation fund sufficient to seek to make these victims whole. Nothing will erase or even ease the pain and grief suffered by these families and loved ones, but justice has its own virtue. GM has the rare opportunity in American corporate life to do justice and not wait for its consultants and its investigators to ``work through the issues here.'' Working through the issues here means doing right by those victims.
Yesterday I asked Ms. Barra about the safety of the vehicles still on the road. She assured me they were fine to drive--as long as the key was not overloaded, as long as the ignition switch was used alone without additional keys. She assured me there was no more risk to drive one of those vehicles than any other in use today.
I asked her about the contradiction of that statement with the recall notice itself. I am going to display it here. It says that these vehicles are risky to drive, in effect, if your keyring is carrying added weight or--and I emphasize that it is an ``or''--there are rough road conditions or jarring or impact-related events.
Unfortunately, too many of our highways and our byways have rough road conditions or provide the opportunity for jarring events.
Ms. Barra may believe tests and analyses done by her company she referred to yesterday assured her and GM that driving these defective vehicles is safe as long as it is done with only the ignition key, without the added weight of additional keys, but she must know, because she has children--as do I and most Members of this body--that they will drive with additional keys on that ignition switch. In fact, hundreds of thousands--millions of Americans have no idea that driving these vehicles with added keys provides that kind of potentially fatal risk. When these cars lose power, they lose steering, they lose their brakes, and they lose their airbags. Losing power, brakes, and steering is terrifying, but airbags are essential if power is lost and the car crashes, as victims of these crashes have discovered, to their sorrow and the grief of their families.
This kind of pothole, a rough road condition, a potentially jarring event--how common are they? This photograph is from Surf Avenue in Stratford, a beautiful town along the coast of Connecticut. I could take hundreds of these photographs from Connecticut, which has better roads than many other places in our State or country. They are as common as the roads themselves.
Those risks are GM's responsibility to warn. It has failed to do so. I asked Ms. Barra what evidence or facts would persuade her to issue a stronger warning. The recall notice itself said that risk increases if your keyring is carrying added weight--such as more keys or the key fob itself; the key fob alone adds additional weight--or your vehicle is experiences rough road conditions or other jarring or impact-related events. What would persuade her to issue this warning to consumers: Stop driving these cars until they are repaired.
I specifically asked her whether evidence about drivers who have, in fact, experienced the power loss without adding additional weight to their keyrings--if they encountered these kinds of conditions and their cars shut down--would persuade her to change her view. She answered to me:
Senator, if I had any data, any incidents where with just the key, or the key and the ring, there was any risk, I would ground these vehicles across the country.
Ms. Barra, let me tell you about Laura Valle. In March of 2014, Ms. Valle, who owns a 2007 silver Chevrolet Cobalt, received GM's recall letter instructing her to remove all items from her keyring, leaving only the vehicle key. As the recall notice instructed, she continued to drive her vehicle using only the vehicle key. Yet, while driving with a friend, she lost power. Fortunately, she was on the right side of the road and she was able to pull the vehicle to a stop.
There will be other instances. I know they will come forward to me, to my colleagues, and to lawyers who may represent them.
Today I call on GM to issue that warning. There is more than ample evidence or, as Ms. Barra said, ``data,'' ``incidents'' where the key or just the key and the ring led to the vehicle stopping not because there was added weight but because they encountered rough road conditions or jarring events, which could consist of simply leaning the wrong way or the driver's knee moving.
These vehicles create unacceptable risks before they are repaired. The advice GM should give to people is this: Bring these cars to be repaired immediately. Stop driving them. In the meantime, use the loaners GM has offered.
GM has the opportunity to avoid another business decision. It may be more costly to provide loaners, but in the long run they will save lives and dollars.
Finally, I ask GM to do the right thing again by supporting the legislation Senator Markey and I have introduced. This legislation is critically important to the future. It can't correct the past, but it can make sure that accidents are reported; that defects are made known to the National Highway Transportation Safety Administration; and that there are not only incentives for reporting but there is increased accountability for failing to do so; and require NHTSA to establish a publicly accessible, searchable database that will allow drivers and consumer safety advocates to connect the dots. Companies that are unwilling to connect those dots will be brought to justice, will be required to recall these vehicles and find out about defective models in time to save lives.
Ms. Barra has not yet committed to supporting this bill. In my view, it is her responsibility to do so. It is the responsibility of GM to take this action now.
She and GM have the opportunity to change corporate culture not only in that company but in others by setting a model--leading by example, not by their words at a Senate hearing or letters of apology but by action. Action speaks louder than words. Action speaks louder than the appointment of a consultant or an investigator whose report may not be made fully public.
Ms. Barra was unwilling to make that commitment yesterday. It is a corporate culture that refused to make a 57-cent change to car ignitions--or a $2 change--even though that change would have saved lives. Now is the time to hold GM accountable, for GM to issue that warning that will help save others from a fate known only too well by those families who came to be with us yesterday.
I look forward to working with Ms. Barra, GM, my colleagues, and with all who are interested in improving car safety and to using this sad, tragic, unfortunate experience as a turning point and a teaching moment--a rare moment--of bipartisan action to make our roads safer.
Thank you, Madam President.
I yield the floor, and I suggest the absence of a quorum.
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