Providers and Administrators in blue logo
MenuMENU
SearchSEARCH

GM Board Warned of Serious Problems by Quality Manager in 2002

June 23, 2014
4 min to read


A former head of General Motors corporate quality audit warned the company’s board in a letter in 2002 that it needed to “stop the continued shipment of unsafe vehicles” and “recall suspect vehicles that were already in customers’ hands,” reported Reuters.


The letter from William McAleer shows that GM's directors and top management were told about serious safety defects in vehicles that were coming off the company’s production lines more than 11 years before GM recalled millions of vehicles for faulty ignition switches linked to at least 13 deaths. The contents have not been previously published.

Ad Loading...


GM spokesman Jim Cain said he was unable to address the details of the events 12 years ago, but that the company would take such concerns seriously today.


"We are conducting what we believe is the most exhaustive and comprehensive safety review in the history of the company, and that includes looking at vehicles that were built in the late 1990s. And if we find anything that is a safety issue, we will act," he said.


McAleer, former head of a group responsible for quality checks on cars shipped in North America, said his unit regularly found serious problems in new vehicles and that when he raised his concerns he was told his team should stay out of safety issues.


He told the board it should stop shipments of unsafe cars, launch recalls, and revise quality controls to make the company “independent of corporate politics and cost-cutting concerns.”


McAleer said he was transferred out of his quality job in late 1998. Court records show he unsuccessfully sued GM at least four times, primarily seeking whistleblower protection.

Ad Loading...


A copy of the letter was sent to each of the 12 directors at the time – including then CEO Rick Wagoner and then Chairman John Smith.


In it, McAleer accused the highest ranking quality executive in North America at the time, Tom LaSorda, of a “stonewall” that included trying to stop McAleer from contacting higher management. LaSorda, who was then a GM vice president, later became CEO of Chrysler and then CEO of Fisker Automotive. He is currently a venture capitalist at IncWell.


LaSorda launched a new safety process, based on a Procter & Gamble program for toothpaste, that was intended to document life-threatening defects, McAleer said in the letter to the board. He described that as an inadequate response that allowed defects to continue and amounted to “willful ignorance” of problems by GM.


LaSorda declined to comment on the accusations on Friday. In a 1999 letter from LaSorda to McAleer, which was shown by McAleer to Reuters, LaSorda wrote, “I have taken decisive action with the operating groups and involved senior leadership with a clear process which has been put into place.”


GM spokesman Cain said that board minutes from 2002 did not show any indication that the McAleer letter was discussed, and he said that the letter from LaSorda appeared to have responded appropriately. "The documents we have in front of us suggest we were trying to do the right thing," he said.

Ad Loading...


Eight days ago, McAleer sent copies of the 2002 document to members of House and Senate committees now investigating GM and its handling of the ignition switch issue. McAleer provided the documents to Reuters along with copies of postal delivery receipts that he said showed copies of the letter to each director were delivered to GM headquarters.


McAleer told Reuters that managers operated in fear of losing their jobs if they raised safety concerns.


He also showed Reuters a letter from January 1999, in which he asked LaSorda for a meeting with "GM Legal" and LaSorda’s boss, saying: “The current situation represents a clear and present danger to both our customers and our shareholders.”


LaSorda responded the next month in his letter but did not address McAleer's request for meetings with other GM executives.


Bloomberg Businessweek this week described a suit by McAleer against GM in a story about another employee, a colleague of McAleer named Courtland Kelley, who also unsuccessfully sued the automaker. Kelley is still employed by GM and the company has said it will reexamine his safety concerns.

Ad Loading...


Lawmakers in a hearing this week grilled GM CEO Mary Barra and outside lawyer Anton Valukas, who investigated GM’s response to the switch issue. In a report published June 5, he found widespread incompetence and negligence in many GM divisions, but he said that senior GM officials and its board of directors were unaware of the problems.


The report said that the Valukas team reviewed all board correspondence dating back to 2003. McAleer’s letter to the board is from July 2002.

More Industry

Line graphic showing week-over-week wholesale auto price changes
Industryby StaffApril 22, 2026

Black Book: Weekly Market Update

Wholesale auto conversion rates dropped slightly as auction buyers proved picky last week, analysts observed.

Read More →
pavement with car and charger wrapped around it painted on
Industryby Lauren LawrenceApril 16, 2026

EV Battery Cycle Life at Risk

Fast charging of electric vehicles provides a solution for range anxiety, but it also poses a risk to battery cycle life due to increased temperatures, according to an EV supply chain data provider.

Read More →
Photo of exterior facade of Beardmore Chevrolet store
Industryby Hannah MitchellApril 14, 2026

Founding Family Sells Nebraska Dealerships

Expanding Midwest automotive group picks up three stores as part of the robust transaction activity early this year.

Read More →
Ad Loading...
Up-close photo of car battery
Industryby Hannah MitchellApril 13, 2026

Automaker Increases Parts Recycling

Stellantis is adding a third end-of-life vehicle dismantling facility to feed its growing reuse business sparked in large part by autos’ growing lifespans.

Read More →
Photo of white 2026 Ford Bronco on a sandy beach
Industryby Hannah MitchellApril 10, 2026

March New-Vehicle Sales Don’t Reflect War

Cox Automotive data shows Americans doubled down on big-is-better despite price increases. Slightly higher incentives helped fuel the demand.

Read More →
Photo from the rear of the XC60 SUV
IndustryApril 8, 2026

Volvo to Shift Some EV Production to U.S.

The automaker says its movement of some electric-vehicle work to the S.C. factory is part of a more tailored product focus. It also plans to add a new hybrid model to the plant’s itinerary.

Read More →
Ad Loading...
Bar graphic depicting week-over-week change across the various vehicle segments
Industryby StaffApril 7, 2026

Black Book: Weekly Market Update

Last week's wholesale automotive auction activity continued in a healthy mode, though buyers practiced selectivity.

Read More →
red car at a gas station being filled with gas. Efficiency Drives Demand. Providers and Administrators logo
Industryby Lauren LawrenceApril 7, 2026

Gas Prices Driving Consumer Interest

CarGurus’ first quarterly review of 2026 shows that affordability concerns are continuing to drive consumer purchases with a shift to more fuel-efficient options.

Read More →
Blurred photo of red car moving down a road
Industryby Hannah MitchellMarch 31, 2026

Automakers Have More Tricks Up Their Sleeves

JD Power analysts see auto retail faring this year’s storms well through various means, though it acknowledges conditions are challenging to accurately predict.

Read More →
Ad Loading...
background view of Washington D.C. with the capitol building and cherry trees. Text says 'What's the Cost?' with two diverging arrows and the Providers and Administrator's logo
Industryby Lauren LawrenceMarch 31, 2026

Insurance Rates Continue to Fall

Car insurance premiums have continued to decline so far this year, the overall national average settling at $138 per month in March, according to Insurify data.

Read More →