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GM Faces Fines For Not Providing NHTSA With Answers

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Tina Robinson3 years ago

On Tuesday afternoon, the National Highway Traffic Safety Administration (NHTSA) said General Motors had failed to meet an April 3 deadline to supply the agency with information surrounding the ignition switch recall. The automaker faces a fine of up to $7000 each day, starting from April 3, according to USA Today.

More about the NHTSA Fine

NHTSA gave GM a deadline of April 3 to answer 107 questions posed by the safety agency as part of an investigation into the company’s ignition switch recall. Despite submitting over 200,000 pages of documents, NHTSA says GM left over one-third of the questions unanswered.

On April 4, GM told NHTSA it would be unable to answer some of the questions asked because those answers could only be answered by an internal investigation. GM has asked former U.S. Attorney Anton Valukas to spearhead an internal probe to discover why a recall was delayed for over a decade. NHTSA, however, told GM, “Mr. Valukas investigation is irrelevant to GM’s legal obligation to timely respond.”

NHTSA has also said that it can turn over GM’s delay to the Justice Department as soon as tomorrow for further action.

The $7000 per day fine is the maximum per-day fine NHTSA can levy against an automaker.

GM Under Scrutiny

GM first announced it was recalling vehicles with defective ignition switches in February. That recall was later expanded twice and included over 2.5 million vehicles by the end of March. The recalled vehicles, mostly Chevrolet Cobalt and Saturn Ion, have ignition switches that can easily be pushed out of the “run” position, resulting in a sudden loss of engine power. GM has linked 13 deaths to the faulty switches.

Committees in both the House and Senate heard testimony last week as part of investigations into why the automaker failed to recall the vehicles despite knowing of problems with the switches for over a decade. GM Chief Officer Mary Barra repeatedly dodged committee members’ questions, saying she is awaiting the results of Mr. Valukas’ investigation.

The Justice Department and NHTSA are also conducting their own investigations.


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