General Motors Fined $35m Over Delayed Recall

Written By Unknown on Jumat, 16 Mei 2014 | 22.57

The US government has fined General Motors the maximum $35m (£21m) for delayed recalls of vehicles with faulty ignition switches.

GM has admitted it knew about the problem for more than a decade, though car-makers are supposed to report safety defects within five days of discovery.

GM did not recall the cars until this year.

At least 13 people have died in crashes linked to the problem, the company says.

The Department of Transportation's National Highway Traffic Safety Administration (NHTSA) said the company had agreed to pay the civil penalty.

The NHTSA has also been criticised over the safety scandal because it received reports in 2007 and 2010 about the faulty switches, but did not act.

Along with the Justice Department, the agency has been investigating GM's delayed recall of 2.6 million Chevrolet Cobalts, Saturn Ions and other cars. 

The faulty ignition switch was prone to turning off, causing the engine to shut down and disabling the air bags.

The Detroit-based firm first spotted the problem with the ignition switches during pre-production in 2001, however, it was not until early 2014 that it instigated a recall.

Transportation Secretary Anthony Foxx said in a statement: "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects." 

The fine amounts to less than a day's revenue for the car-maker, which made $37.4bn in the first quarter.

As part of its agreement with the US government, GM has also acceded to government oversight on safety issues.

On Thursday, General Motors said it had issued five more recalls, covering about 2.7 million vehicles in the US, mostly for faulty break lights. 

GM chief executive Mary Barra appeared before Congress in April and told lawmakers offered her "sincere apologies" for the scandal.

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