GM in heavy case over faulty ignition switches

Tuesday, May 20, 2014
 | 
Chris Woodward (OneNewsNow.com)

The federal government's fine for General Motors may only be a drop in the bucket compared to what GM will ultimately pay.

The government is fining General Motors $35 million for a lengthy delay in recalling small cars with faulty ignition switches that could move out of the run position, shutting off the engine and electric power and thereby knocking out power-assisted brakes and steering among other things. The $35 million fine is the maximum allowed by law.

Automakers are supposed to report safety problems within five days of discovering them, but as the Associated Press points out, GM has acknowledged knowing about the problem for at least a decade. That's one of the reasons Sharon Carty with AOL Autos thinks GM is going to pay more than $35 million.

“GM is going to have more fines coming down the road,” Carty says. “They're under investigation by the Securities and Exchange Commission and the Justice Department. This could cost them several billion dollars."

Berlau

Earlier this year, Toyota agreed to a $1.2 billion settlement with the Justice Department in a criminal probe over the company's recall of Toyota and Lexus vehicles that accelerated unexpectedly and were linked to multiple injuries and deaths.  However, John Berlau of the Competitive Enterprise Institute thinks there was less evidence in that case than in the current one with GM. 

"The ignitions would shut off [in the GM cars],” he explains. “GM actually warned against heavy key chains. Well heavy key chains are something an ignition should withstand." 

At least 13 people have died in crashes linked to the problems arising from GM's faulty ignition switches.

We moderate all reader comments, usually within 24 hours of posting (longer on weekends). Please limit your comment to 300 words or less and ensure it addresses the article - NOT another reader's comments. Comments that contain a link (URL), an inordinate number of words in ALL CAPS, rude remarks directed at other readers, or profanity/vulgarity will not be approved. More details

SIGN UP FOR OUR DAILY NEWSBRIEF

SUBSCRIBE

VOTE IN OUR POLL

Why did attorneys drop their case against pro-life videographer David Daleiden and his team?

CAST YOUR VOTE

GET PUSH NOTIFICATIONS

SUBSCRIBE

LATEST AP HEADLINES

Shooting deaths of law enforcement spike in 2016
Prosecutors drop all remaining charges in Freddie Gray case
Judge dismisses manslaughter charge against Florida deputy
Trump says Russia should find Clinton's missing emails
Judge Roy Moore defends his gay marriage ban memo
Hostage: Terrorists forced my husband to film murdered priest
Georgia police officer fired for flying Confederate flag
Judge: Reagan shooter can leave hospital to live in Virginia
Obama admin. spending millions to buy blueberries

LATEST FROM THE WEB

Democrat speakers short on truth
Leftists at DNC: ‘Long live Palestine,’ destroy Israel, support Black Lives Matter
School district tries 'homeschooling illegal' ploy
Poor Bernie — a loser remains a loser because the fix was in
Democrats’ hysterical rhetoric could help make Donald Trump president

CARTOON OF THE DAY

Cartoon of the Day

REASON & COMPANY

NEXT STORY
Restaurant owners: Government's fondness for ethanol hurting our industry

A coalition of chain restaurants continues to speak with lawmakers and agencies about ethanol policy.