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GM's Internal Report Finally Made Public

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On: Thu, Jun 12, 2014 at 4:43PM | By: Karen Cook


GM's Internal Report Finally Made Public

General Motors is paying out beaucoup dollars every day in connection with the ignition switch recall fiasco. The company was given a deadline of April 3rd to produce documentation explaining when they knew about the defect and why they took so long to report it to the National Highway Traffic Safety Administration (NHTSA). Last week the internal investigation, which was lead by former US Attorney Anton Valukas, finally produced the documentation, which was handed over to the NHTSA for their perusal; it was also made available to the general public. The report specifies where the manufacturer went wrong and blames the late recall on incompetence and complacency. That’s a fancy way of saying that the people who should have caught the faulty ignition switch either didn’t notice or didn’t care.

GM paid out $430,000 in daily fines for the tardiness of the report and another $35 million in a one time fine for failing to report the problem in a timely manner. Outside of government fines and penalties, the car maker still stands to lose several billion dollars in repairs costs and loss of sales.

This isn’t the end of the story for the ignition switch debacle. General Motors is still the subject of several federal investigations which could lead to even more loss of revenue, and there are several separate cases of criminal charges which could come from the Department of Justice and the Securities and Exchange Commission.

Even though GM reports that they have not suffered huge sales losses as yet, the longer the story goes on, the more likely it is that they will do so.




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