GM Slapped With $35 Million Fine For Recall Delay

Recall

This is what happens when an automaker doesn't obey the law.

Actions, or in this case the lack thereof, have consequences. As a result of its failure to address the serious issue of its ignition switch failure in several of its most popular models, General Motors has agreed to pay a $35 million fine to the National Highway Transportation and Safety Administration (NHTSA). This amount is actually the maximum allowed in a case such as this. However, there’s more that GM has agreed to in terms of its future recall policies.

It will be subject to “unprecedented oversight requirements” in order to prevent future situations such as this one. Also as part of the agreement, GM has admitted that it failed to properly notify federal authorities in a timely manner regarding the defective ignition switch. In other words, GM is admitting that it broke the law. Because of this, GM has also agreed to allow the US federal government unprecedented access to its internal investigation, which is still ongoing. This coming October 4 is the agreed upon date in which it will complete all customer car repairs. The company is also subject to future fines if it does not issue recalls within the legal time limits.

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Additionally, the automaker has set up its Global Product Integrity division which will encourage "and empower" employees to speak up if any one of them discovers a potential problem. We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety," stated GM CEO Mary Barra. "We will emerge from this situation a stronger company."

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