NHTSA fines General Motors Company (GM) $35 million over delayed recall

Posted May 18, 2014

The National Highway Traffic Safety Administration is fining General Motors Company (NYSE:GM) $35 million for its delay of the recall of 2.6 million vehicles that were affected by ignition switches, which caused 30 accidents and 13 deaths. GM admitted to breaking federal law with its handling of the recall process over the part and will give federal regulators full access to findings from its internal investigations.

U.S. Secretary of Transportation Anthony Foxx proclaimed 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.” GM CEO Mary Barra said that the company has learned several lessons from the recall.

General Motors will have to notify the NHTSA whenever it makes any changes to its production schedule for replacement ignition switches. GM will also have to use their full efforts to bring in the biggest number of affected consumers to its dealership network, including outreach over the Internet and to non-English speakers. GM will also submit to periodic reviews with the NHTSA.