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General Motors CEO Provides Few Details In Appearance Before Congress

It was only two months ago that Mary Barra, freshly crowned as the new General Motors chief executive officer, visited Washington DC as an esteemed guest of First Lady Michelle Obama for the State of the Union address. On Tuesday, Barra returned to the Capitol under more strained circumstances. For more than two contentious hours, she took questions from members of a House of Representatives subcommittee investigating General Motors years-long delay in initiating a recall of millions of vehicles that contained a defect that has killed at least 13 people. Why did GM accept faulty ignition switches that were below the company's set specfications? Why did GM learn about the problem in 2001 yet take no action until 2014? Will GM compensate victims' families even though the company's bankruptcy may limit its liability? Those were a few of the questions members of the House Oversight and Investigations Subcommittee asked. Few concrete answers were forthcoming. For her part, Barra sidestepped most of the questions, saying she wouldn't have information needed to answer them until an internal review is completed. David Friedman, the administrator of the National Highway Traffic Safety Administration, testified after Barra. The biggest news that emerged from the hearing was that General Motors has retained attorney Kenneth Feinberg to advise the company on its civil and legal responsibilities. He has made a career of resolving disputes and serving in a 'fixer' role, serving as the chief of the federal government's September 11th Victim Compensation Fund, as an administrator of compensation fund for victims of the BP Deepwater Horizon disaster and a similar fund for victims of the Boston Marathon bombing. Barra, who has been GM's CEO since January but been with the company since 1980, expects to meet with Feinberg on Friday, and have a concrete plan within the next 30-60 days. Yet Barra would not say for certain Tuesday that GM would compensate the victims at all. Despite repeated questions from Rep. Diana DeGette (D-Colo.), Barra did not outline the company's intentions. "I assume GM is hiring (Feinberg) to help identify the size of claims and then compensate the victims? Is that right," DeGette asked. "Is GM willing to put together some kind of a compensation fund for these victims that Mr. Feinberg will then administer?" "We've hired him to help assess the situation," Barra replied. "So really, there's no money involved at this point," DeGette asked.

New GM subcompact SUV spied, could be a Chevy or GMC

GM's pair of subcompact crossovers have been trundling along for a while now. The Buick Encore was the first for Americans in the 2013 model year, and the Chevy Trax that was based on the Encore (an encore of the Encore, if you will) arrived for the 2015 model year. Each has undergone a mild update, but these spy photos could indicate their replacements are in the works. Or not. For starters, we can't be sure which GM brand this new SUV is destined for. Though the timing and its flowing lines could indicate Buick, the thick horizontal bars visible in the grille would indicate otherwise. The next Encore being at least related to this is at least a possibility. Making the case for GMC are those thick grille bars, the fact that it extends far below the lights, and may even rise above them, similar to the Acadia. And that rising beltline isn't that different from that of the Acadia. Arguing against the GMC idea is the Encore, which is almost always sold in GMC-Buick combo dealers. Much as the Acadia was made smaller to eliminate confusion and in-house competition with the Enclave, it's hard to see GM opting to resurrect such an issue at the bottom end of the SUV market. That means we're leaning toward this little SUV wearing a Chevy bowtie. The split grille with a large lower section and small upper section is the brand's current design language, as seen on the new Malibus and Cruzes. The shape is vaguely Equinox-like. And like Buick, Chevy also has a subcompact crossover ready for replacement: the Trax. Now, our photographer reports he's seen another subcompact testing that has Blazer design cues, but in this crossover-hungry market, we wouldn't be surprised if two similarly sized but differently styled Chevy crossovers make the grade. It's a strategy that's working pretty well for Jeep. We'll no doubt be seeing more of these disguised test vehicles milling about the country in the coming months, so perhaps we'll eventually get a better idea of what this is before more official information starts trickling out within one or two years. Related Video: Featured Gallery GM Subcompact Crossover spy shots View 10 Photos Image Credit: SpiedBilde Spy Photos Buick Chevrolet GM GMC Crossover SUV buick encore chevy trax

GM profits threatened by glut of pickups

Automotive News reports that General Motors may slash production or ramp up discounts in order to deal with an oversupply of pickup trucks. GM currently has more than double the standard supply of pickups, and the vehicles are threatening to dampen the automaker's profits for 2013. Typically, automakers try to sustain a 60- to 75-day supply of vehicles, but GM is currently loaded with a 139-day supply, as of last month. At the end of November, the automaker was sitting on 245,853 units.
The manufacturer says that it will adjust production accordingly before laying any incentives on the profitable pickups. Even so, there's some concern that the inventory swell could hurt the roll-out of the next-generation Chevrolet Silverado and GMC Sierra. GM actually began slowly stepping back production in August, but it's clear the company will take further action as it heads toward the end of the year and into the next. Analysts predict the automaker could reduce pickup manufacturing by nearly half in the first quarter of 2013.
That still may not be enough to keep GM from laying extra cash on the Silverado and GMC Sierra. While the company's incentive spending was down in November compared to the same month in 2011, both the Ram 1500 and Ford F-150 saw double-digit percentage increases in sales last month while the Silverado and Sierra numbers slid compared to a year prior. Incentive spending could help move more trucks and add some balance to the GM inventory surge.