GM Performance News: US Government Hits General Motors With Record-Breaking Fine for Dangerous Ignition Switches
On Friday, General Motors was slapped with a record-breaking $35 million U.S. fine for its delayed response to an ignition switch defect in millions of vehicles that has been linked to at least 13 deaths.
GM, the largest U.S. automaker, discovered the faulty ignition switches over a decade ago. However, instead of installing a $10 part into their cars to fix the problem and ensure safety, GM decided that it would be cheaper to pay off family members than have a recall, based on a cost-benefit analysis. As a result, the flawed ignition switch has been blamed for at least 13 deaths, including a fatal June 2013 crash in Quebec.
U.S. Transportation Secretary Anthony Foxx announced the fine, which is the maximum penalty that the government can impose and tops the record for a fine against an automaker. Nevertheless, the amount is less than the profits that the automaker earns in a day. According to ClickOnItDetroit.com, the company made $37.4 billion during the first quarter of the year.
"We know no one is perfect. But we cannot tolerate, what we will not accept, is that a person or a company who knows danger exists and says nothing. Literally, silence can kill," Foxx said, according to Reuters. "The fact remains that GM did not act and did not alert us in a timely manner. What GM did was break the law. They failed to meet their public safety obligations."
In response, CEO Mary Barra released a statement, saying, "We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety. We will emerge from this situation a stronger company," the LA Times reported.