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GM fined record $35m over ignition recall delay

Penalty comes in wake of auto maker’s failure to report issue.


Afp May 17, 2014 1 min read
GM only notified the agency and began recalling 2.6 million cars in early February. PHOTO: FILE

WASHINGTON:


The US auto safety regulator Friday imposed a record $35 million fine on General Motors for its failure to promptly recall cars with ignition faults linked to at least 13 deaths.


The National Highway Traffic Safety Administration (NHTSA) said the automaker took years to report the deadly problem even though company engineers were well aware of it in Chevrolet Cobalts and other models in 2009.

GM only notified the agency and began recalling 2.6 million cars in early February, setting off a Justice Department probe and victim lawsuits that could ultimately cost it billions.

“Safety is our top priority, and this announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects,” said US Transportation Secretary Anthony Foxx.

“They had that information and they told no one,” Foxx said. “Crashes happened, and people died.” Under the terms of a negotiated settlement, GM will have to undergo what the NHTSA called “unprecedented oversight” of its operations, including close monitoring of its handling of safety issues.

The problem behind the recall centres on ignitions that, after a jolt, or simply due to a heavy key chain, can move into the “off” or “accessory” position while a car is in motion.

That will switch off a car’s electrical systems, including power steering and airbag deployment, even if the engine is still running, leaving drivers and passengers unprotected in a crash. 

Published in The Express Tribune, May 18th, 2014.

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