NTSB Fines GM Record $35M Over Faulty Ignitions

Image: NTSB Fines GM Record $35M Over Faulty Ignitions

Friday, 16 May 2014 11:13 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

General Motors Co. will pay a record $35 million fine as part of the U.S. government’s investigation into how it handled the recall of 2.59 million small cars over faulty ignition switches, the Transportation Department said.

GM’s agreement with regulators includes “significant and wide-ranging internal changes” to how it reviews safety issues and decides on recalls, the department said in a statement.

“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,” U.S. Transportation Secretary Anthony Foxx said in the statement.

Report: How to Safely Get Rich After 60

The National Highway Traffic Safety Administration has been investigating why it took the largest U.S. automaker years to address engineering concerns and consumer complaints about engine stalling dating from 2004. At least 13 fatalities have been linked to the defect, which can deactivate air bags.

Foxx and NHTSA Acting Administrator David Friedman will discuss the agreement with Detroit-based GM at a news conference in Washington today.

GM hasn’t fully complied with an extensive request for information by the regulator. Since April 3, the company has been accruing fines of $7,000 per day. GM said it was waiting for an internal investigation to be complete before answering some of NHTSA’s questions.

‘Stronger Company’


GM confirmed in an e-mailed statement that it had reached an agreement with NHTSA and said it has begun working with NHTSA to review processes and policies to avoid future recalls of this nature.

“We have learned a great deal from this recall,” Chief Executive Officer Mary Barra said today in a statement. “We will now focus on the goal of becoming an industry leader in safety. We will emerge from this situation a stronger company.”

GM has said heavy key rings or jarring can cause ignition switches on some cars to slip out of the “on” position, cutting off power and deactivating air bags.

The company’s shares rose 0.8 percent to $34.63 at 10:52 a.m. New York time. They dropped 16 percent this year through yesterday.

The $35 million fine is the largest ever paid by a U.S. automaker for delays in issuing a safety recall. Ford Motor Co. and Toyota Motor Corp. previously paid $17.4 million, the maximum allowable at the time.

Congress has since changed the maximum NHTSA fine to $35 million. Regulators are pushing lawmakers to approve fines of as much as $300 million for a bigger deterrent effect, the Transportation Department said.

Report: How to Safely Get Rich After 60

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Jose Antonio Vargas Among Illegal Immigrants Pleading With Obama

Wednesday, 20 Aug 2014 14:29 PM

Eleven undocumented immigrants are putting themselves forward to plead with the Obama administration to protect them fro . . .

Obama: Will Do 'What We Must' to Protect Americans From ISIS 'Cancer'

Wednesday, 20 Aug 2014 12:43 PM

President Barack Obama on Wednesday condemned the Islamic State militants who beheaded American journalist James Foley a . . .

Hamas Warns Foreign Airlines to Steer Clear of Ben Gurion

Wednesday, 20 Aug 2014 14:07 PM

Hamas has threatened to launch new rocket attacks against Israel's Ben Gurion International Airport as it warned foreign . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved