Current GM Vice President Knew about Ignition Switches in 2005

Jun 27, 2014 02:14 PM EDT | Jordan Ecarma

A current General Motors senior executive apparently knew about ignition switch problems in the Chevrolet Cobalt and other small cars nearly a decade ago, according to documents revealed by a House panel this week.

New information has surfaced following grand jury subpoenas from federal prosecutors that are part of a criminal investigation into the 2.6 million-vehicle recall that has been linked to at least 13 deaths, the Wall Street Journal reported.

The documents show that Doug Parks, who is GM vice president of product programs, was privy to the ignition switch problems in May 2005 and suggested that the key's head be changed to a small hole to lower the chance that shifting weight would bump the ignition switch.

For the affected vehicles, a driver's knee can bump the key, causing the engine to shut off and simultaneously disabling the airbags, a problem that has been related to at least 54 crashes.

While GM has already agreed to pay a $35 million federal fine, the maximum allowable under law, it could be paying much more as a result of the federal grand jury's investigation. In March, Toyota paid $1.2 billion to settle a similar investigation from the Justice Department.

Parks is a key player under CEO Mary Barra, who has vowed that GM is working with a "new culture" and has taken steps to reboot the company's management.

Fifteen GM employees have been fired following the ignition switch issues, including former GM engineer Ray DeGiorgio, who caught most of the blame when documents revealed that the fatal problems came to light much earlier. Additionally, five employees have been disciplined for their part in the tragic oversight, although they have not been named.

"We have openly acknowledged that the Southern District of New York is looking into activities at General Motors," a GM spokesman told WSJ. "A grand jury and subpoenas are part of that process. As we have said before, we are fully cooperating and will continue to do so."

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