General Motors Company (NYSE:GM) is still reeling from its 2014 product recall. In response to mistakes made at the company over the last number of years, several executives have lost their positions. Today the company revealed that John Calabrese, vice president of global vehicle engineering, is retiring from the company as a result of a restructuring of that department.
According to a statement from the General Motors Company (NYSE:GM) head of product development, Calabrese’s retirement isn’t related to the recall. The executive will, according to the release from GM, advise the company until his retirement in August.
General Motors restructuring sees heads roll
The heads of several General Motors Company (NYSE:GM) departments have left their jobs inside of the last fortnight. Though that might cause worry by investors in other companies, it appears that the market is taking GM’s decision to shake up its executive structure as a sign of the strength of new CEO Mary Barra.
John Calabrese leaves the company after more than 30 years working in the company’s product division. The executive was a key ally of Barra when she ran the company’s product division.
The 2.5 million-car recall that General Motors Company (NYSE:GM) was forced to announce earlier this year was likely the biggest contributor to the 11% drop in the value of the company since January 1. Stock has, however, risen by more than 7% since GM announced the departure of Selim Bingol and Melissa Howell, heads of Communications and Human Resources respectively, on April 14.
General Motors manages to delay customer lawsuit
General Motors Company (NYSE:GM) saw an interesting development in a California lawsuit relating to its massive recall. The suit is being staled as the judge attempts to resolve an issue relating to the company’s 2009 reorganization. It is not clear whether the lawsuit is allowed under the terms of the company’s 2009 bailout.
According to the terms of the company’s bailout, it is protected from economic losses stemming from malfeasance from before the bankruptcy agreement. A likely decision will rest on whether or not the company did anything wrong in relation to the vehicle problems in the last five years. General Motors Company (NYSE:GM) shareholders are going to see plenty of news about lawsuits relating to the faults, and their effect are not likely to subside for some years.
The news about General Motors Company (NYSE:GM) in recent years has been burgeoning with optimism. Detroit is back on track, and America is once again making cars that people actually want, according to the narrative.
Despite the apparent break with the past, General Motors will be dealing with the problems of its past for a long time into the future. Shareholders betting on the company’s success should get comfortable with the uncertainty stemming from that.