GM to pay maximum U.S. penalty over recall as part of transport probe
Friday, May 16, 2014 - 00:57
May 16 - General Motors will pay a $35 million fine and take part in ''unprecedented oversight requirements'' as part of a U.S government investigation into the automaker's recall of faulty ignition switches linked to at least 13 deaths. Rough cut (no reporter narration).
▲ Hide Transcript
▶ View Transcript
ROUGH CUT (NO REPORTER NARRATION)
General Motors Co will pay a $35 million fine as part of the U.S. Transportation Department's investigation into the handling of faulty ignition switches in some of its vehicles, the automaker and government said on Friday (May 16).
GM also agreed to take part in "unprecedented oversight requirements," including providing full access to its internal investigation and notifying federal transportation officials of any changes to GM's effort to make repair parts, the government said.
"For failing to report a safety defect in a timely manner, General Motors has agreed to pay a 35 million dollar civil penalty, which is the maximum penalty under the law. It is also the highest civil penalty ever paid as a result of a NHTSA investigation into violations stemming from a recall, " said United States Secretary of Transportation Anthony Foxx.
"Today's penalty doesn't just penalize GM for inactions in the past, it also looks to the future to ensure that GM's existing cars on the road are safe, and that vehicles they manufacture going forward are safe as well. That's because the agreement includes unprecedented oversight requirements ensuring that GM takes the steps necessary to change its safety culture so something like this never happens again," he added.
The Transportation Department, along with other U.S. agencies, is investigating the timing of the automaker's recall over the faulty switches, which have been linked to at least 13 deaths.
GM engineers first discovered the defect in 2001, and the company has been criticized for failing to detect the faulty part and for not recalling the vehicles earlier.
Congress, the Department of Justice, the U.S. Securities and Exchange Commission and several states are conducting their own investigations, and GM has an internal probe that is expected to be completed within the next two weeks.
The announcement Friday comes one day after GM announced a another five recalls covering nearly 3 million vehicles worldwide because of tail lamp malfunctions and potential faulty brakes.
Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code