General Motors to pay $35 million fine, maximum allowed by law - KMSP-TV

General Motors to pay $35 million fine, maximum allowed by law

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General Motors will pay a record $35 million fine to the U.S. government for failing to recall small cars with faulty ignition switches in a timely manner.

The defect resulted in the non-deployment of airbags in certain Chevrolet Cobalt models and other GM cars.

“Safety is our top priority, and 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,” said U.S. Transportation Secretary Anthony Foxx. “While we will continue to aggressively monitor GM’s efforts in this case, we also urge Congress to support our GROW AMERICA Act, which would increase the penalties we could levy in cases like this from $35 million to $300 million, sending an even stronger message that delays will not be tolerated.”

Federal law requires automakers to report safety issues and defect to the National Highway Traffic Safety Administration within 5 days of discovering them.

GM has agreed to provide NHTSA with full access to the results of its internal investigation into the recall, to take steps to ensure its employees report safety-related concerns to management, and to speed up the process for GM to decide whether to recall vehicles.

The $35 million fine is the maximum allowed by law, but is just a fraction of the $3.8 billion GM made last year.

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