GM Fined $35 Million for delayed recalls


Earlier today GM agreed to pay the justice department’s max fine of $35 million and make “wide ranging internal changes” to it’s handling of future safety defects.

David Friedman, the acting administrator of NHTSA, today called the findings of the agency’s investigation into GM’s recall “deeply disturbing.”

The NHTSA learned that GM knew in 2009 of a definitive connection between the ignition switches and airbags failing to deploy in crashes.

“They had that information, and they told no one,” said U.S. Transportation Secretary Anthony Foxx today at a news conference in Washington. “These penalties should put all automakers on notice that there is no excuse and zero tolerance for failing to notify the federal government when a defect puts safety at risk.”

It seems like GM should have been fined more. If $35 Million is the max fine, then the US Justice Dept needs to look at it’s policies also.

Other penalties should be coming soon from state agencies. We’ll put another update on the blog when we get one.

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