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- BUSINESS, Page 61Was GM Reckless?
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- The troubled automaker is accused of ignoring an unsafe gas-tank
- design
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- By THOMAS MCCARROLL - With reporting by William McWhirter and
- Joseph R. Szczesny/Detroit
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- On a sunny afternoon last November, Walter Krug was
- cruising along in his 1988 four-door Chevy pickup truck on I-20
- near Stanton, Texas, when suddenly another pickup blew a tire,
- veered into Krug's lane and broadsided him. The violent impact
- ruptured the gas tank of Krug's truck, spewing fuel that
- exploded into a fireball. Unable to free himself, Krug, 37, was
- burned to death. His family puts the blame on the truck's
- design. "Krug would have survived the crash if not for the fire.
- But there shouldn't have been a fire," says Mick McBee, the
- attorney representing the family. After the Krugs threatened to
- sue General Motors, the pickup's manufacturer, the company
- settled out of court.
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- Krug, a former oil-company foreman, was one of more than
- 300 people killed since 1973 in collisions involving burning
- gas tanks in GM pickups, according to the Center for Auto
- Safety. While the company denies that the trucks are prone to
- catch fire and accuses plaintiffs' lawyers of sensationalizing
- the accidents, GM documents released last week suggest that the
- automaker recognized as long ago as 1983 that the fuel tanks
- could be made much less vulnerable to side-impact collisions. GM
- has already been hit with more than 100 product-liability
- lawsuits in connection with the gas tanks. The company has
- settled some suits, but it could face another wave of litigation
- as a result of the new disclosures. Consumer groups are
- pressing the National Highway Traffic Safety Administration
- (NHTSA) to order a recall of the 5 million pickups still on the
- road.
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- "It's the Ford Pinto all over again, only worse," claims
- Clarence Ditlow, executive director of the CAS, referring to the
- 1970s-era compact car whose allegedly flawed gas-tank design led
- to the death of 27 motorists.
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- The fuel-tank controversy may worsen the woes of the
- world's largest company. In the past few weeks GM has reshuffled
- its top management, accelerated plans to lay off tens of
- thousands of workers, and reported a third-quarter loss of $753
- million. Analysts estimate that the gas-tank problem could
- eventually cost GM as much as $700 million in legal fees and
- damages. So far, the company has paid out more than $200 million
- in settlements, according to the CAS. What remains incalculable
- is the effect on GM's image at a time when the company is
- struggling to regain its reputation for quality.
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- GM's pickups, sold under the Chevrolet and GMC nameplates,
- are commonly used as recreation vehicles and as workhorses in
- fields like construction and farming. As in Ford and Chrysler
- pickups, the gas tank in GM trucks was mounted inside the cab,
- behind the seats, until federal regulations in 1973 forced the
- companies to relocate the tank. Ford and Chrysler placed it
- underneath the vehicle's chassis, inside a set of heavy-steel
- frame rails. In GM models made between 1973 and 1987, however,
- the gas tank was mounted like a saddlebag, outside the frame.
- This configuration made the tank more vulnerable to side-impact
- collisions, critics say. GM changed the design in some models
- beginning in 1988, placing the tank inside the frame.
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- GM maintains that the older design is safe, but its own
- engineers seem to have raised questions about the outboard
- location as far back as 1970. GM submitted 70,000 pages of
- internal documents to the NHTSA last week as part of the
- agency's review of pickup-truck safety. In a memo dated Sept.
- 7, 1970, safety engineer George Carvil warned of possible fuel
- leaks in side collisions. "Moving these side tanks inboard," he
- wrote, "might eliminate most of these potential leakers." An
- internal memo dated Dec. 15, 1983, by product analyst Richard
- Monkaba, discussed the company's plan to change the gas tank's
- position with its 1987 models. "The fuel tank will be relocated
- inside the frame rails," wrote Monkaba, "a much less vulnerable
- location than today's tanks."
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- GM contends that the memos are being taken out of context
- and that the pre-1988 trucks meet, if not surpass, federal
- safety standards. For example, GM notes that the trucks passed
- the traffic-safety administration's 20-m.p.h. side-impact crash
- tests. In 1980 GM began conducting its own 50-m.p.h. crash
- tests, even though they are not required by law. Explaining why
- the tanks were mounted outboard for so long, a high-ranking GM
- executive points out that exhaust pipes and other mechanisms
- usually crowd the center of the chassis, leaving little room for
- a large gas container. Says the executive: "The perfect place
- for a fuel tank hasn't been invented yet." GM is resisting
- efforts to recall the pickups, a process that would involve
- installing a protective lining in the fuel tank and cost the
- automaker an estimated $50 million. The NHTSA, which could order
- a recall, is expected to decide by mid-December whether to do
- so.
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