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GM to pay maximum U.S. penalty over recall as part of transport probe

Friday, May 16, 2014 - 01:45

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. Vanessa Johnston reports.

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General Motors was slapped with the maximum penalty on Friday over its handling of faulty ignition switches, linked to at least 13 deaths. U.S. Transportation Secretary Anthony Foxx announced the fine. SOUNDBITE (English) U.S. SECRETARY OF TRANSPORTATION ANTHONY FOXX SAYING: "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." Foxx also said GM would be forced to adhere to "unprecedented oversight requirements". SOUNDBITE (English) U.S. SECRETARY OF TRANSPORTATION ANTHONY FOXX SAYING: "We know no one is perfect, but what we cannot tolerate, what we will not accept, is that a person or a company who knows danger exists and says nothing. Literally, silence can kill." The ignition-switch defect was first noticed by GM more than a decade ago. But the first recalls began only in February of this year, despite years of consumer complaints. U.S. government agencies and several states are conducting their own investigations into the matter, as is General Motors. Some think the automaker is not being punished enough. The consumer group Center for Auto Safety called the $35 million fine a "slap on the wrist to a hundred billion dollar corporation."

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GM to pay maximum U.S. penalty over recall as part of transport probe

Friday, May 16, 2014 - 01:45