Growing Recalls are Just Part of General Motors’ Woes
General Motors, which in the last 2 days has issued 5 recalls, received the maximum $35 million penalty, the largest ever for a carmaker, for its failure to report and recall the Chevy Cobalt ignition switch defect that led to 13 fatalities.
The New York Times reported that General Motors “will be required to make wide-ranging changes to its safety practices that will be supervised by the government, another first for an automaker.”
GM had already named Jeff Boyer the new global head of vehicle safety and Ken Morris the new vice president in charge of global product integrity. Some executives involved in the Chevy Cobalt defect coverup were also fired. As part of the agreement, the government will oversee safety issues General Motors
There are ongoing lawsuits and criminal investigations pertaining to the Chevy Cobalt safety issues, and the rash of General Motors’ recent recalls may be the carmakers attempt to heed off future claims. The National Highway Traffic Safety Administration imposed the record fine for GM failing to disclose safety problems in a timely manner.