US fines GM after delays in car recalls
Print Edition
US safety regulators have fined General Motors US$35 million for delays in recalling small cars with faulty ignition switches that are linked to at least 13 deaths.
This marks the first time the government has imposed the maximum penalty allowed by law against an automaker. Still, the amount is less than a day’s revenue for the automaker, based on the US$37.4 billion it took in during the first quarter.
As part of an agreement announced yesterday by the Transportation Department and National Highway Traffic Safety Administration, GM also has agreed to government oversight on safety issues, and to report safety problems much faster than in the past.
NHTSA 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 start recalling the cars until February of this year.
GM says at least 13 people have died in crashes linked to the problem, but trial lawyers suing the company say the death toll is at least 53.
The US$35 million fine was doubled from last year. But Congress has been urged to pass law that would raise the fine to US$300 million.
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