GM Faces Criminal Charges for Delayed Ignition Switch Recall

Federal investigators have concluded General Motors Co. is guilty of criminal wrongdoing for its 10-year delay in recalling defective ignition switches linked to more than 100 fatalities, sources tell The New York Times.

GM and the Dept. of Justice could reach a settlement this summer, although the company reportedly won't admit guilty. GM is expected to agree to pay a fine that surpasses last year's record $1.2 billion penalty against Toyota Motor Corp. for concealing defects that caused its vehicle to accelerate unintentionally.

The Times says GM and the Justice Dept. continue to negotiate what misconduct the company will admit to. Last May GM admitted to delaying the switch recall and paid a record $35 million fine to the National Highway Traffic Safety Administration.

The newspaper says several former GM employees, including some who the company fired in 2014 for failing to handle the defect properly, also may face criminal charges.

GM began recalling 2.6 million vehicles last year to replace the switches, 10 years after the company conceded it knew the devices were defective. The switches can be jogged out of the "on" position by a bump in the road, thus turning off the engine and disabling the power steering, power brakes and airbag systems. The chastened company launched 83 other recalls in 2014 totaling a record 30.4 million worldwide.

Sources tell the Times that GM has been cooperating in the investigation, which may reduce the amount of its eventual fine.