GM To Pay $35 Million Federal Fine for Delayed Recalls | Edmunds

GM To Pay $35 Million Federal Fine for Delayed Recalls


Just the Facts:
  • General Motors will pay the U.S. government's maximum fine of $35 million for the delayed recall of 2.6 million cars with defective ignition switches, according to an announcement by the U.S. Department of Transportation on Friday.
  • The automaker also agreed to "unprecedented oversight requirements" as part of the agreement.
  • "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," said U.S. Transportation Secretary Anthony Foxx in a statement.

WASHINGTON — General Motors will pay the U.S. government's maximum fine of $35 million for the delayed recall of 2.6 million cars with defective ignition switches, according to an announcement by the U.S. Department of Transportation on Friday.

The automaker also agreed to "unprecedented oversight requirements" as part of the agreement.

"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," said U.S. Transportation Secretary Anthony Foxx in a statement.

Federal safety regulators said the action represents the highest civil penalty amount ever paid as a result of a National Highway Traffic Safety Administration investigation of violations stemming from a recall.

GM said it has already "begun reviewing processes and policies to avoid future recalls of this nature."

"We have learned a great deal from this recall," said GM CEO Mary Barra in a statement posted on the company's Web site. "We will emerge from this situation a stronger company."

Federal law requires automakers to notify NHTSA within five business days of determining that a safety-related defect exists.

Under the terms of the agreement, GM must take steps to "maximize the number of vehicle owners who bring in their vehicles for repair, including targeted outreach to non-English speakers, maintaining up-to-date information on its Web site and engaging with vehicle owners through the media."

The GM recall covers the 2005-'10 Chevrolet Cobalt, 2007-'10 Pontiac G5, 2003-'07 Saturn Ion, 2006-'11 Chevrolet HHR, 2006-'10 Pontiac Solstice and 2007-'10 Saturn Sky.

The recall has been linked to 13 deaths.

Edmunds says: Car consumers should expect more outreach from GM concerning this recall — and others — in the future.

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