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GM Fined for Delaying Ignition Switch Recalls

 
Posted Friday, May 16th 2014 @ 11am

(Washington) - The U.S. government is fining General Motors $35 million for delays in recalling small cars with faulty ignition switches. The government also says Friday that GM will report safety issues faster in the future.

The fine is the maximum allowed by law. But it's only a fraction of the $3.8 billion GM made last year.

The National Highway Traffic Safety Administration has been investigating GM's delayed recall of older small cars with defective ignition switches. GM has acknowledged knowing about the problem for at least a decade, but it didn't recall the cars until this year. The company says at least 13 people have died in crashes linked to the problem.

The Justice Department also is investigating.

Automakers are required to report safety defects within five days of discovering them.

 

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(Copyright 2014 Clear Channel and The Associated Press, all rights reserved.) 

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