gm logo

General Motors fine for recall delays

Published: 06:23, May 17, 2014

A $35 million General Motors fine for delays in recalling small vehicles with defective ignition switches has been announced by the National Highway Traffic Safety Administration Board (NHTSA). According to General Motors (GM), the company has started reviewing its policies and processes to make sure recall delays do not happen again.

The NHTSA said it was the single largest civil fine ever levied following a recall investigation.

Faults linked to 13 deaths

The faulty ignition switches had been associated with 13 deaths. The company recalled a total of 2.6 million small cars. The defective ignition switches resulted in the non-deployment of airbags and sudden shutoff of the engine in certain Chevrolet Cobalt and other models.

According to US law, car manufacturers must notify NHTSA about any safety-related defect within five business days of identifying it. GM admitted in the Consent Order that it failed to do so.

General Motors Fine

The faulty ignition switch affected the Chevrolet Cobalt, Pontiac G5, Saturn ION, Saturn Sky, Pontiac Solstice, Pontiac Pursuit, And Chevrolet HHR.

U.S. Transportation Secretary Anthony Foxx said:

“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.”

“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.”

NHTSA to monitor GM

In the Consent Order, GM will provide NHTSA with the results of its internal investigation into this recall, and will take measures to make sure its employees report safety-related concerns to management. The process for GM to decide whether a recall is required will become faster.

The NHTSA said it received reports in 2007 and then again in 2010 regarding defects in the switches. However, each time it “determined it lacked the data necessary to open a formal investigation”.

Customers have criticized both the NHTSA and GM for their poor response to safety concerns.

In April, GM announced that it had taken a $1.3 billion hit to cover the recall costs.

Cars made before 2009 not included

The judgment and GM’s consequent agreement does not cover cars with defects manufactured before 2009, when the US taxpayer bailed out the company – a report found that the US taxpayer is still $10.5 billion out-of-pocket regarding the GM bailout. GM has had problems with its vehicles for the past ten years.

NHTSA says its defect investigations have resulted in 1,299 recalls (across all vehicle companies), involving over 95 million vehicles and vehicle equipment items. The Agency says its activities have helped reduce vehicle deaths to all-time lows.

NHTSA wrote:

“Including today’s consent order, the agency has obtained record fines of $124.5 million in the last five years from automakers who have failed to promptly report defects to NHTSA.”

Veronica Salvador Avatar

Other News

Iridium shareholders approve Rocket Lab takeover: what still has to happen

Sep 25, 2026

Akamai’s 11.6 billion dollar Anthropic deal ties cloud revenue to a 5.5 billion dollar buildout

Sep 25, 2026

Bentley completes 350 million pound Crewe investment as it unveils its first electric vehicle

Sep 25, 2026

Falling birth rates did not reduce total output in historical data, NBER study finds

Sep 25, 2026

Cheaper renewable power does not solve the capital problem for poorer countries

Sep 25, 2026

Facial payments may feel novel, but money worries can curb repeat use

Sep 24, 2026

Precision farming cuts water use while raising crop yields, study finds

Sep 24, 2026

EU allocates €505m to Lebanon for recovery, reforms and basic services

Sep 23, 2026

Alcoa raises $2.6bn in notes to fund South32 aluminium-assets deal

Sep 23, 2026

UK workplace health plan targets preventable exits from employment

Sep 23, 2026

IMF says Sri Lanka’s recovery is holding, but the next review is still unresolved

Sep 23, 2026

OECD sees global growth holding up after energy shock, but forecasts higher inflation

Sep 23, 2026

QAD and Redzone plan NVIDIA-powered AI for factory data and production planning

Sep 22, 2026

World Cup pitchside sponsorship raised a cross-border advertising problem

Sep 22, 2026

Hollywood’s biggest budgets still favour male-only teams, study finds

Sep 22, 2026

Why more companies are becoming their own insurers

Sep 22, 2026

EU publishes data-centre rating rules and opens consultation on minimum standards

Sep 21, 2026

ABB launches Infinitus DC portfolio for AI data centers, with first full sites expected in two to three years

Sep 21, 2026

Starbucks selects Chennai for a technology hub, with work set to move in-house over time

Sep 21, 2026

CXMT says its G5 memory platform has entered mass production with more dies per wafer

Sep 21, 2026