GM agrees to pay $35 million federal fine for concealing defects in small-car ignition switches

GM agrees to pay $35 million federal fine for concealing defects in small-car ig

In a move which marks the end of one segment of General Motors' (GM) recall saga, the US automaker has agreed to pay a $35 million federal penalty for concealing ignition-switch defects in its small cars.

Along with agreeing to pay the hefty fine - which, incidentally, is the largest ever penalty assessed by the US National Highway Traffic Safety Administration - GM has also agreed to give the government an increased oversight of its safety procedures.

Moreover, GM has also acknowledged the fact that it violated the law by failing to timely inform the government about the ignition-switch flaw affecting its small cars.

The defect has, as per the automaker, led to at least 13 deaths in crashes. However, trial lawyers suing the company claim that at least 53 people died as a result of the crashes resulting from the ignition-switch defect in GM's small cars.

While agreeing to pay the $35 million fine, GM has also asserted that it will report safety issues a lot faster. The recall of 2.6 million small cars was announced by the company this February, more than a decade after engineers the flaw in ignition switches was detected by the GM engineers.


User login



You May Have Missed...

How Early Man settled at the high altitudes of the Tibetan Plateau
Sat, 11/22/2014 - 10:10

It is known that early man tried to live at the Tibetan Plateau, also called as the 'roof of the world', around 20,000 years ago. It region has...


Nigeria Update

World Malaria Day Draws Attention over Need for Renewed Commitment
Sat, 04/26/2014 - 12:48

The world commemorated the Annual Malaria Day on April 25 and the attention was drawn towards...


Economy Watch

Long-standing Identity of US was at Stake, says Federal Reserve Chair
Sat, 10/18/2014 - 12:25

On Friday, Chair of the Board of Governors of the Federal Reserve System Janet Yellen made an...


Health Tonight

Schooling hours affecting sleep patterns
Mon, 11/10/2014 - 13:57

According to a new study, the early schooling hours are affecting the sleeping patterns in...


Science Tonight

Rise in agricultural crop production leads to increased CO2 levels
Sat, 11/22/2014 - 10:13

As reported by Associated Press, a new study says that in the last five decades, the levels of...


UK News

ISS to be visible to the naked eye
Sun, 10/19/2014 - 11:46

The International Space Station (ISS) will be visible to the naked eye in the skies over UK once...


Pharmaceuticals

Gilead Sciences Exploited Monopoly Right to Set $1,000 for One Pill of Hepatitis
Mon, 08/04/2014 - 11:17

Is it right for pharmaceutical companies to charge patients too high for life saving drugs that...


US News

Scientists Reveal Mystery behind Red Color of Jupiter's Great Red Spot
Sat, 11/15/2014 - 11:43

In 1665, the Great Red Spot on Jupiter was discovered by Giovanni Cassini. The red color of the...


Technology Tonight