GM Acted Criminally in Ignition Switch Recall, Could Face Billion Dollar Fine: Report
Federal investigators have identified criminal wrongdoing in General Motors’ ignition switch recall.
Justice Department investigators are negotiating what will likely become a record penalty to the American automaker after identifying criminal wrongdoing in General Motors’ failure to disclose a defect that resulted in at least 104 deaths. The settlement could be reached as early as this summer and will likely surpass Toyota’s $1.2 billion that was paid last year for the unintended acceleration issue.
What will separate GM from Toyota is that the American automaker has been eager to resolve the investigation, which will earn it cooperation credit. Toyota, on the other hand, fought prosecutors on the accusations rather than cooperating with the investigation.
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In addition, former GM employees are under investigation and could face criminal charges as a result of the ignition switch recall. According to the report from The New York Times, federal prosecutors in Manhattan and the FBI investigated whether GM failed to comply with laws that require timely disclosure of defects and misled regulators on the extent of the issue.
Authorities also investigated GM on whether it committed fraud during its 2009 bankruptcy by not disclosing the defect.
[Source: The New York Times]
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Jason Siu began his career in automotive journalism in 2003 with Modified Magazine, a property previously held by VerticalScope. As the West Coast Editor, he played a pivotal role while also extending his expertise to Modified Luxury & Exotics and Modified Mustangs. Beyond his editorial work, Jason authored two notable Cartech books. His tenure at AutoGuide.com saw him immersed in the daily news cycle, yet his passion for hands-on evaluation led him to focus on testing and product reviews, offering well-rounded recommendations to AutoGuide readers. Currently, as the Content Director for VerticalScope, Jason spearheads the content strategy for an array of online publications, a role that has him at the helm of ensuring quality and consistency across the board.
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"What will separate GM from Toyota is that the American automaker has been eager to resolve the investigation, which will earn it cooperation credit. Toyota, on the other hand, fought prosecutors on the accusations rather than cooperating with the investigation." This isn't about Toyota. This is about GM and their wrongdoing. Cut the nationalistic bullshit........