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GM to Pay $35 Million Fine for Tardy Ignition Switch Recall
General Motors Co. has agreed to pay a $35 million fine the maximum currently allowed to the National Highway Traffic Safety Administration for waiting more than a decade to report an ignition switch flaw linked to 13 fatalities.
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General Motors Co. has agreed to pay a $35 million fine the maximum currently allowed to the National Highway Traffic Safety Administration for waiting more than a decade to report an ignition switch flaw linked to 13 fatalities.
GM admits it broke the law in delaying February's recall of 2.6 million vehicles equipped with the defective switch. NHTSA rules require carmakers to notify the agency within five days after deciding a defect exists.
The company also agreed to give federal regulators a full copy of its own internal investigation into its delayed response. GM expects to complete the probe in about one month. The company has repeatedly pledged to overhaul the way it identifies and responds to safety defects.
The deal requires GM to keep NHTSA updated on its progress on fixing the recalled vehicles. The company reports separately that replacement parts are being produced by supplier Delphi Automotive plc around the clock that will give it "the ability to repair the majority" of affected vehicles by October.
GM says it has purchased additional manufacturing equipment to help Delphi install more production lines this summer.
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