GM CEO Mary Barra Defends General Counsel

(RTTNews) - General Motors Co.' (GM) CEO Mary Barra defended General Counsel Michael Millikin after he came under fire at a US Senate sub-committee hearing related to the auto giant's delayed recall of 2.6 million cars with faulty ignition switches.

"How in the world did Michael Millikin keep his job?" asked Senator Claire McCaskill, chair of the Senate Subcommittee on Consumer Protection, Product Safety and Insurance.

However, Barra defended Millikin stating him as "a man of tremendous integrity" and an important part of her team. Barra noted that the problems with the switch and its potential damages were not brought to the general counsel's attention.

Mary Barra along with General Counsel Mike Millikin and Rodney O'Neal, the CEO of Delphi Automotive (DLPH)-- the supplier of defective switches-- have been called to testify before a Congressional Committee. The committee will also hear from former US Attorney Anton Valukas, who conducted an internal investigation for GM, and Kenneth Feinberg, the compensation expert hired by GM.

This is Barra's fourth appearance in Capitol Hill since GM recalled 2.6 million Chevrolet Cobalts, Saturn Ions and other small cars for defective ignition switches that have caused at least 13 deaths and over 50 crashes.

Barra had dismissed 15 employees and took disciplinary action against 5 other employees, after internal investigations reported a "pattern of incompetence and neglect."

Millikin admitted that some of his staff had failed in their duty in the manner they handled the ignition-switch defect issue. However, he claimed that he did not know that the faulty switches were the reason behind the accidents and deaths until early this year.

GM is currently trading at $37.31, down $0.17 or 0.45%, on the NYSE.