Delays in Vehicle Recalls Lead DOT to Levy Highest Financial Penalty Against GM

On Friday, May 16th, General Motors was hit with the largest civil penalty against an automotive manufacturer in US history, due to their delays in the now notorious ignition switch vehicle recall case.

The Department of Transportation fined GM $35 million as the result of an investigation into the company’s vehicle recall that covered 2.6 million older model cars, most of which were 2004 and 2005 model years. The vehicle recall was a much-delayed response to 42 crashes and 13 deaths over the course of 10 years, during which time many plaintiffs in a class action, shareholders, and government officials believe that GM knew about problems with the vehicles’ ignition switches, and failed to do anything about it.

“They had information and they didn’t tell anyone … crashes happened and people died,” US Transportation Secretary Anthony Foxx said in announcing the fine. “Had GM acted differently, maybe some of this tragedy would have been averted.”

The US Justice Department is conducting its own investigation into the vehicle recall debacle, but Secretary Foxx has not commented on any pending criminal charges.

“Systemic problems, problems in structure, problems in the ability to react quickly. It is hard to point at one single fault in the system,” Acting National Highway Traffic Safety Administration (NHTSA) Administrator David Friedman said , adding that it was “very clear” that the defective switches were known at all levels of the company “all the way up to executives.”

This is the largest fine in the Department of Transportation’s history.

“It will put all automakers on notice that there will be zero tolerance” for not reporting safety problems, Foxx said.

Meanwhile, the DOT has asked Congress to raise the maximum fine they can levy against automotive manufacturers from $35 million to $300 million.

In response to the ignition switch vehicle recall, GM has created a website to help customers determine if their vehicle has been recalled or not: gmignitionswitchupdate.com

“With these safety recalls and lifetime warranties, we are going after every car that might have this problem, and we are going to make it right,” said Jeff Boyer, vice president of GM Global Vehicle Safety. “We have recalled some of these vehicles before for the same issue and offered extended warranties on others, but we did not do enough.”

In all, GM has recalled 6.1 million vehicles in the last 16 months.

The Strom Law Firm Can Help with Defective Products and Vehicle Recall Cases

If you have experienced a problem with a defective product in your automobile, especially if a defective part has led to an auto accident or personal injury, and a proper vehicle recall notice has not been issued, you may be entitled to compensation. The attorneys at the Strom Law Firm can help. We can help you with complicated auto insurance claims, and make sure you receive the compensation you deserve to help you with lost income and medical bills. Our attorneys are licensed to practice in South Carolina, Georgia, and New York. We offer free, confidential consultations to discuss the facts of your case, so contact us today at (803) 252-4800.