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NEW INFORMATION: Government fines GM maximum $35 million in safety case

By: AP Email
By: AP Email

WASHINGTON (AP) -- Transportation Secretary Anthony Foxx says "silence can kill," literally -- and that's why government safety regulators have fined General Motors $35 million.

Foxx says GM broke the law by waiting too long to take action on a problem with ignition switches linked to at least 13 deaths.

The penalty is the maximum that the government can impose and it's the first time an automaker has been fined that much. But the amount is less than a day's revenue for GM.

As part of an agreement announced today by the Transportation Department and the National Highway Traffic Safety Administration, GM also has agreed to government oversight on safety issues. And it is supposed to report safety problems much more quickly than in the past.

The government has been investigating GM's delayed recall of 2.6 million older small cars with defective ignition switches. GM has acknowledged knowing that the switches had problems as early as 2001. But it didn't start recalling the cars until February of this year.

Lawyers suing the company say the death toll from the faulty switches is at least 53.

A consumer safety advocate is hoping a Justice Department investigation will result in a much stiffer penalty. Clarence Ditlow of the Center for Auto Safety wants a fine of $1 billion or more -- along with individual criminal charges against GM engineers and their superiors.
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WASHINGTON (AP) --The U.S. government is fining General Motors $35 million for delays in recalling small cars with faulty ignition switches.

The government also says Friday that GM will report safety issues faster in the future.

The fine is the maximum allowed by law. But it's only a fraction of the $3.8 billion GM made last year.

The National Highway Traffic Safety Administration has been investigating GM's delayed recall of older small cars with defective ignition switches. GM has acknowledged knowing about the problem for at least a decade, but it didn't recall the cars until this year. The company says at least 13 people have died in crashes linked to the problem.

The Justice Department also is investigating.

Automakers are required to report safety defects within five days of discovering them.
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UNDATED (AP) --The U.S. Transportation Department says it will make a major announcement Friday on its investigation into General Motors safety issues.

Transportation Secretary Anthony Foxx and National Highway Traffic Safety Administration Acting Administrator David Friedman are scheduled to attend a press briefing.

The agencies have been investigating GM's delayed recall of 2.6 million small cars due to faulty ignition switches. GM has acknowledged knowing about the problem for at least a decade but didn't recall the cars until earlier this year. The company says at least 13 people have died in crashes linked to the problem.

The agencies have the authority to fine GM $35 million for being too slow to respond to safety issues.


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