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GM FINED $35M FOR IGNITION SWITCH DEFECTS

Posted on Wednesday, July 2nd, 2014 at 2:26 pm    

Federal regulators recently imposed a record $35 million dollar civil fine on GM for taking more than a decade to disclose the ignition switch defect on millions of their cars.

According to a recent AP article, this was the maximum fine allowed by current law.  In addition to the fine, GM has agreed to report problems faster and submitted to more indepth oversight of its safety operations by federal regulators.

Safety advocates argue that the fine is too small to deter bad behavior by auto makers such as General Motors.  These safety advocates are hoping that the Justice Department, which is conducting a criminal investigation, will levy a significantly larger fine once it concludes its investigation.  At a recent news conference, acting NHTSA Administrator David Friedman revealed a 2009 memo from a parts supplier to General Motors which stated that the ignition switch problem could disable the cars’ airbags.  Friedman noted that had the government been aware of this memo in 2009 it would have sought a recall.

Our legal team at the Law Office of Bill Pelhan is ready to help Lancaster residents better understand product liability and pursue legal action against manufacturers who have created unsafe products. Speak with us about your situation and options by calling 717-392-6362 today

For more information see: http://www.usatoday.com/story/money/cars/2014/05/16/gm-recall-probe/9169355/ .