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General Motors fined $35m over recall

Business Desk |
Update: 2014-05-17 00:00:00
General Motors fined $35m over recall

DHAKA: US car manufacturer General Motors has been fined $35m(£20.8m) for delays in recalling small cars with faulty ignition switches.

The fine is the maximum allowed by US law.

GM said it had already begun reviewing its processes and policies to avoid future delays to recalls of this nature.

To date, the firm has recalled 2.6 million cars with the defective switch, which has been linked to 13 deaths.

The National Highway Traffic Safety Administration Board (NHTSA) said it was the single highest civil penalty ever levied as a result of a recall investigation.

"Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said US Transportation Secretary Fox in a statement announcing the fine.

As a result of the settlement, GM has also agreed to provide NHTSA with access to the results of its internal investigation as well as to speed up its process for determining when to recall vehicles, reports the BBC.

"We have learned a great deal from this recall [and] we will emerge from this situation a stronger company" said GM chief executive Mary Barra in a statement.

BDST: 0950 HRS, MAY 17, 2014

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