The U.S. Government has fined General Motors $35 million (about €25.5 million) for the way it handled an ignition switch defect in millions of vehicles, which has been linked to at least 13 deaths. It is the largest fine the National Highway Traffic Safety Administration (NHTSA) can impose, although further investigations into the issue could see more severe punishments imposed.
Issues with the ignition switch on the Chevrolet Cobalt, Saturn Ion and other GM models were noted in 2004, but a recall was not announced until February of this year. The defective switches could unexpectedly move from the 'on' position to the 'accessory' position, switching off the engine and disabling the airbags. With the engine off there is also no power assistance for the steering or brakes.
While investigating the issue the NHTSA found 'deeply disturbing' evidence of the way GM treated safety concerns. Acting chief of the NHTSA, David Freidman, found internal training documents that discouraged the use of terms such as 'safety' and 'defect' when identifying product risks. Freidman also told reporters that employees at all levels from engineers up to executives were aware of the information years before the recall of 2.6 million vehicles; although there is no evidence that GM CEO Mary Barra, who took the Chief Executive position in January, had any knowledge of the problems.
The agency has also come under criticism for failing to act sooner to address this safety issue. Reports about problems with the switches were filed in 2007 and 2010 but were not followed up because it, 'determined it lacked the data necessary to open a formal investigation'.
Anything else?
As well as the fine General Motors will have to hold regular meetings with the NHTSA to report on safety problems and emerging defects. It is also possible that the Department of Justice will bring criminal charges against GM for concealing safety defects, which could see further penalties imposed on the automotive manufacturer.