GM Will Pay $420,000 to Feds for Investigation Delay

Jun 11, 2014 02:16 PM EDT | Jordan Ecarma


After incurring more than $420,000 in cumulative federal fines, General Motors will finally stop racking up its tab with $7,000 per day for not answering questions related to its now-infamous ignition switch recall.

Because the automaker has complied with the National Highway Traffic Safety Administration's request for documents, the agency has stopped fining GM thousands of dollars per day, The Detroit News reported.

"We have what we asked for," Transportation Secretary Anthony Foxx told The Detroit News. "The (GM) report is consistent with what we said a few weeks ago, which is there are some culture issues." The fatal ignition switch issues were "entirely preventable," he added.

The $420,000 in cumulative fines came after GM failed to meet the NHTSA's April 3 deadline to answer 107 detailed questions about the recall of nearly 2.6 million small cars with faulty ignition switches that have been connected with at least 13 deaths.

GM has additionally been fined $35 million after a federal investigation into the company showed that GM apparently knew about the switch problems at least a decade ago.

The massive recall of small cars including the Chevrolet Cobalt and Saturn Ion has been followed by an unusual number of recalls from automakers across the board. 2014 already marks the biggest year for vehicle recalls in the U.S. for a decade with more than 22 million recalled cars so far.

According to Foxx, GM's recall woes have likely affected the entire auto industry.

"We expect the timely disclosure of issues and if we don't get a timely disclosure there will be consequences," Foxx told The Detroit News. "We'll keep doing that industrywide if we have to until we see compliance across the board."

The $420,000 fine is due by July 4, while the $35 million must be paid this week.

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