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Lesson Learned in GM's Defect Debacle: Everything Old Is New Again

It's difficult to find a silver lining in the ongoing General Motors faulty-ignition-switch saga – from an HR, managerial, or even a crisis-management perspective. So reports The Economist.

It's true that the auto behemoth has conducted a lengthy outside investigation led by Anton Valukas (a celebrated former prosecutor who also investigated the collapse of the investment-banking powerhouse Lehman Brothers); spearheaded subsequent recalls of millions of its cars in search of possible defects; and even fired numerous senior-level executives for their alleged roles in the multitude of accidents and deaths that resulted from the safety flaw.

Yes, GM has done a great deal of soul-searching in trying to find out internally what went wrong over a 10-year period where the defect was ignored, and it's quite possible the firm emerge as a better organization than it's been. But the results of the Valukas investigation unfortunately point to accusations that have been leveled at Detroit's Big Three auto manufacturers for decades: that the company is dysfunctional and poorly managed.

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