GM recall update
Following the recent ignition switch recall that affected over 2 million vehicles,General Motors (GM) have been under federal investigation. The company's legal department is now the focus of the internal inquiry into how the company handled the vehicle safety defect which is linked to 13 deaths.
The faulty ignition switches on Chevrolet Cobalts, Saturn Ions and other GM vehicles can cause their engines to stall, which in turn prevents air bags from deploying during crashes. Also, power steering and power brakes do not operate when the ignition switch unexpectedly moves from the "on" position to "accessory."
What is the GM recall investigation for?
The investigation comes after reports that the automaker originally noticed the defect more than a decade ago but only issued the first recalls in February of this year, despite years of consumer complaints. Regulators accused the company officials of concealing the problem though in an article published on Saturday, a review of internal documents, emails and interviews showed that high ranking officials, “particularly in GM's legal department, led by the general council Michael P. Millikin, acted with increasing urgency in the last 12 months to grapple with the spreading impact of the ignition problem.” The report said a number of GM departments stepped up efforts to fix the switches when depositions threatened to ensnare senior officials, and company lawyers moved to keep its actions secret from families of crash victims and others.
What are the results of the GM investigation?
On Friday, the US government has hit the automaker with a $35 million fine for it's delayed response, the highest fine the US Transportation Department could impose. The company's internal investigation is expected to be completed within the next two weeks While the US Congress, Department of Justice, Securities and Exchange Commission and several states are also conducting investigations.
GM stated that four senior executives have resigned or left the company since the recall began, including Jim Federico, a top engineer who avoided being deposed in a lawsuit last year when GM settled a case tied to a defective ignition switch.
We'll keep you updated on the GM ignition switch recall investigation as it continues