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NHTSA Ends Daily Fine for GM

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Tina Robinson3 years ago

General Motors will no longer have to pay a daily fine of $7000 for failing to provide U.S. regulators with information about defective ignition switches, according to Reuters. The National Highway Traffic Safety Administration (NHTSA) announced the end of the fines today.

About the NHTSA Fines

NHTSA began levying the fines against GM on April 4 after the automaker failed to meet the April 3 deadline to answer 107 regarding the GM ignition recall. NHTSA said the company will not be fined past June 5, when the automaker handed safety regulators the results of an internal inquiry into the decade-long failure to recall the defective vehicles. In total, GM will pay about $430,000 for not providing NHTSA with information in a timely manner.

The cumulated daily fine is in addition to a $35 million fine GM agreed to pay as part of a settlement with the U.S. Department of Transportation for the delayed recall. The settlement also included provisions for GM to undergo extensive oversight from NHTSA in the next few years.

Delayed GM Recall

GM documents have shown that the company was well aware of problems involving the ignition switches that were ultimately installed in about 2.6 million older compact cars, including the Saturn Ion, Chevy Cobalt and other related vehicles. The defective switches can cause moving engine stalls and disable safety features such as airbags, power steering, and power brakes. The faulty switches have been linked by GM to at least 13 deaths and 54 crashes. NHTSA has said that number is likely to grow.

GM Compensation Fund

Last week GM provided federal regulators and congressional investigators the results of a three-month-long internal probe conducted by Jenner & Block’s chairman Anton Valukas. The 315-page report details a history of incompetence and inaction on the part of GM employees for over a decade. 15 employees were fired and five additional employees received disciplinary action as a result of the report.

In a press conference discussing the report, GM CEO Mary Barra and President Dan Amman confirmed that GM would establish a compensation fund for families of those killed or seriously injured by the defective switches. In April, GM retained the services of attorney Ken Feinberg to develop a GM fund. Feinberg’s recommendations are expected later this month.

Thomas J. Henry Representing Over 1,000 GM Recall Victims

Thomas J. Henry is representing more than 1,000 GM recall victims across the United States and has been investigating injuries and deaths linked to the recall since day one. The firm launched a nationwide media investigation into the recall in April, which brought forth thousands of affected individuals who had information critical to the investigation – information that the firm has handed over to federal agencies also investigating GM’s sluggish response the recall.

As more and more individuals have flocked to Thomas J. Henry for representation, the firm has continued to push GM for a victim settlement fund. The firm has had several talks with GM’s victim compensation expert Ken Feinberg regarding appropriate victim compensation for the thousands affected by a fatal design flaw in ignition switches which left numerous dead and countless others seriously injured. 


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