GM to Pay $35M Penalty Over Recall Delay

$35M is the maximum fine for a recall delay

General Motors (GM) has agreed to pay $35 million over delaying a recall of ignition switches.

gm-recall-delayGM will pay the U.S. Department of Transportation (DOT) $35 million for delaying the recall of ignition switches of 2.6 million vehicles from 2003 to 2011. $35 million is the maximum fine that can be given for delaying a recall, USA Today notes.

According to federal law, automobile manufacturers have five days to alert the National Highway Traffic Safety Administration of a safety defect. GM admits that it didn’t do this and there is evidence that it knew about the safety issue back in 2001, reports USA Today.

GM has already issued recalls on almost 13 million vehicles in 2014. The auto manufacturer has already spent $1.3 billion to cover the cost of repairing the faulty ignition switches and will have to spend more to fix other recall issues. The ignition switch recall cost enough to negate the company’s earnings from the first three months of 2014, CNNMoney notes.

More GM News

Article printed from InvestorPlace Media,

©2020 InvestorPlace Media, LLC