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GM No Longer Paying $7,000 a Day in Fines

By | June 11, 2014
Now that GM has released a 315-page report on the ignition switch recall, the government will stop further fines on the automaker. On April 4, the National Highway Traffic Safety Administration fined GM $7,000 for each day that it failed to provide complete answers to a list of 107 questions regarding the ignition recall. By the time GM finally released the report on June 5, the company had racked up a bill of $420,000. And this number doesn't include the $35 million penalty the government imposed on GM for delaying the recall for over a decade. Although the costs are high, GM could have faced a much bigger penalty. Transportation Secretary Anthony Foxx has pushed for raising the maximum fines for delaying recalls from $35 million to as much as $300 million. The government says GM has now brought in all the documents it has requested. Upon release of the report, CEO Mary Barra blamed many of the problems on the company culture. Along with firing 15 employees involved in the ignition switch recall, GM also announced a compensation fund for victims. The recall involving 2.6 million vehicles has been linked to 13 deaths and 54 crashes. Source: The Detroit News
 
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