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We're coming up on three years since the Volkswagen diesel scandal came to light. It caused the German automaker to spiral downward with various fines, lawsuits, people either stepping down or being arrested, and sales tanking. By now, you would think that the pain is done and over. But you would be wrong. Reuters reports today that prosecutors in Germany have fined Volkswagen a billion euros ($1.18 billion) over diesel emission cheating. In a statement, Volkswagen will accept the fine, therefore admitting responsibility for the cheating. "Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome," the company said. By accepting the fine, Volkswagen hopes "the active regulatory offence proceedings" being conducted will come to an end. It will unlikely end the various criminal cases that German prosecutors are working on against various Volkswagen executives. Source: Reuters View full article -
Volkswagen Gets Fined A Billion Euros By the German Government
William Maley posted an article in Volkswagen
We're coming up on three years since the Volkswagen diesel scandal came to light. It caused the German automaker to spiral downward with various fines, lawsuits, people either stepping down or being arrested, and sales tanking. By now, you would think that the pain is done and over. But you would be wrong. Reuters reports today that prosecutors in Germany have fined Volkswagen a billion euros ($1.18 billion) over diesel emission cheating. In a statement, Volkswagen will accept the fine, therefore admitting responsibility for the cheating. "Following thorough examination, Volkswagen AG accepted the fine and it will not lodge an appeal against it. Volkswagen AG, by doing so, admits its responsibility for the diesel crisis and considers this as a further major step towards the latter being overcome," the company said. By accepting the fine, Volkswagen hopes "the active regulatory offence proceedings" being conducted will come to an end. It will unlikely end the various criminal cases that German prosecutors are working on against various Volkswagen executives. Source: Reuters -
China has fined General Motors $29 million for monopolistic pricing according to Reuters. This ends speculation that we first brought to light last week. The fine is due to GM setting minimum prices on certain Buick, Cadillac, and Chevrolet models. "GM fully respects local laws and regulations wherever we operate. We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter," GM said in a email statement. It was speculated that the fine is due to comments made by president-elect Donald Trump about the U.S. possibly recognizing Taiwan. But sources tell Reuters that the investigation was already underway before Trump's comments. This is possibly a move by China to protect their companies. Source: Reuters View full article
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China Fines GM $29 Million For "monopolistic pricing"
William Maley posted an article in General Motors
China has fined General Motors $29 million for monopolistic pricing according to Reuters. This ends speculation that we first brought to light last week. The fine is due to GM setting minimum prices on certain Buick, Cadillac, and Chevrolet models. "GM fully respects local laws and regulations wherever we operate. We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are taken with respect to this matter," GM said in a email statement. It was speculated that the fine is due to comments made by president-elect Donald Trump about the U.S. possibly recognizing Taiwan. But sources tell Reuters that the investigation was already underway before Trump's comments. This is possibly a move by China to protect their companies. Source: Reuters -
General Motors is under investigation by China's National Development and Reform Commission over possible antitrust violations. News of this first broke in an interview with Zhang Handong, director of the National Development and Reform Commission's price supervision bureau done by Chinese Newspaper China Daily. Handong said an American automaker would be penalized for monopolistic behavior. He did not mention said automaker. Bloomberg was able to learn from sources that the automaker in question is General Motors. The accusation is that GM told distributors in China to fix prices in an effort to improve sales. It should be noted that many of the penalties handed down by the bureau have been to mostly foreign companies. This has led many to accuse the bureau of being protectionist of companies in China, something the bureau has denied time and time again. Also, this comes days after President-elect Donald Trump made comments questioning the U.S. policy of not recognizing Taiwan. Source: China Daily, Bloomberg, Reuters View full article
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Rumorpile: GM China Venture Is Under An Anti-Trust Investigation
William Maley posted an article in General Motors
General Motors is under investigation by China's National Development and Reform Commission over possible antitrust violations. News of this first broke in an interview with Zhang Handong, director of the National Development and Reform Commission's price supervision bureau done by Chinese Newspaper China Daily. Handong said an American automaker would be penalized for monopolistic behavior. He did not mention said automaker. Bloomberg was able to learn from sources that the automaker in question is General Motors. The accusation is that GM told distributors in China to fix prices in an effort to improve sales. It should be noted that many of the penalties handed down by the bureau have been to mostly foreign companies. This has led many to accuse the bureau of being protectionist of companies in China, something the bureau has denied time and time again. Also, this comes days after President-elect Donald Trump made comments questioning the U.S. policy of not recognizing Taiwan. Source: China Daily, Bloomberg, Reuters -
Not a pleasant day at Fiat Chrysler Automobiles as the company was handed a $70 Million fine by the National Highway Traffic Safety Administration for failing to report death and injury claims to regulators. Now this penalty comes from FCA admitting to NHTSA that it failed to provide Early Warning Report data to NHTSA over several years starting in 2003. Now this is required by the TREAD Act of 2000 where an automaker provides claims of death and injuries, warranty claims, consumer complaints and field reports of safety issues as a way to identify a possible defect. Automotive News reports that FCA has brought in a third-party to do an audit of its reporting failures. “FCA US LLC accepts these penalties and is revising its processes to ensure regulatory compliance. However, FCA US is confident that it identified and addressed all issues that arose during the relevant time period, using alternate data sources.” FCA said in a statement. This new fine is in addition to a $70 Million penalty that FCA agreed to pay in July to settle a probe by the U.S. government into a pattern of violations found in FCA’s handling of 23 recalls since 2009. Source: Automotive News (Subscription Required), NHTSA Press Release is on Page 2 View full article
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Not a pleasant day at Fiat Chrysler Automobiles as the company was handed a $70 Million fine by the National Highway Traffic Safety Administration for failing to report death and injury claims to regulators. Now this penalty comes from FCA admitting to NHTSA that it failed to provide Early Warning Report data to NHTSA over several years starting in 2003. Now this is required by the TREAD Act of 2000 where an automaker provides claims of death and injuries, warranty claims, consumer complaints and field reports of safety issues as a way to identify a possible defect. Automotive News reports that FCA has brought in a third-party to do an audit of its reporting failures. “FCA US LLC accepts these penalties and is revising its processes to ensure regulatory compliance. However, FCA US is confident that it identified and addressed all issues that arose during the relevant time period, using alternate data sources.” FCA said in a statement. This new fine is in addition to a $70 Million penalty that FCA agreed to pay in July to settle a probe by the U.S. government into a pattern of violations found in FCA’s handling of 23 recalls since 2009. Source: Automotive News (Subscription Required), NHTSA Press Release is on Page 2 -
The National Highway Traffic Safety Administration has issued a $3.5 million fine for Ferrari as it failed to comply with oversight requirements. The agency announced today that the Italian sports car maker had not submitted early warning reports for the past three years. These reports are important for NHTSA as it helps them identify potential or existing safety problems. Federal law requires manufacturers these reports quarterly. Previously, Ferrari was qualified as a a small-volume manufacturer which exempted them from providing these reports. However, Ferrari was still required to notify the agency of any fatal accidents involving its vehicles, something it didn't do for three accidents in this time. Also, Ferrari lost its small-volume manufacturer exemption when it became part of Fiat in 2011. "There is no excuse for failing to follow laws created to keep drivers safe, and our aggressive enforcement action today underscores the point that all automakers will be held accountable if they fail to do their part in our mission to keep Americans safe on the road," said U.S. Transportation Secretary Anthony Foxx. Ferrari spokesperson Krista Florin said in a statement that the missed reports were unintended, and that the automaker had implemented new procedures to "ensure full compliance in the future." Source: Reuters, National Highway Traffic Safety Administration William Maley is a staff writer for Cheers & Gears. He can be reached [email protected] or you can follow him on twitter at @realmudmonster. Press Release is on Page 2 NHTSA Fines Ferrari $3.5 Million for Failing to Submit Early Warning Reports Automaker Did Not Submit Required Safety Information for Three Years WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today announced that Ferrari will pay a $3.5 million civil penalty and has been ordered to comply with NHTSA oversight requirements as set forth in a Consent Order for failing to submit early warning reports (EWR reports) identifying potential or actual safety issues. Federal law requires large manufacturers and affiliates of large manufacturers to submit comprehensive EWR reports on a quarterly basis, in order to provide notice to the Department of potential safety concerns. Ferrari, an affiliate of Chrysler, admitted that it violated the law when it failed to submit required reports to NHTSA over a three-year period, and failed to report three fatal incidents. Until Fiat (which includes Ferrari since 2011) acquired Chrysler, Ferrari qualified as a small volume manufacturer and was not required to file quarterly EWR reports. However, while Ferrari was not required to file quarterly reports, it must report fatal incidents nonetheless. "There is no excuse for failing to follow laws created to keep drivers safe, and our aggressive enforcement action today underscores the point that all automakers will be held accountable if they fail to do their part in our mission to keep Americans safe on the road," said U.S. Transportation Secretary Anthony Foxx. In addition to the civil penalty, the Consent Order requires the automaker to improve its processes for EWR reporting, to train personnel on the EWR requirements, to communicate these improvements to NHTSA, and to retroactively submit all EWR reports. The Consent Order is immediately enforceable in federal court if any terms are violated. "The information included in early warning reports is an essential tool in tracking down dangerous defects in vehicles," added NHTSA Deputy Administrator David Friedman. "Early warning reports are like NHTSA's radar, helping us to find unsafe vehicles and make sure they are fixed. Companies that violate the law and fail to comply will be subject to comparable swift NHTSA enforcement action." EWR reports are required under the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act of 2000. The law requires quarterly reporting of: production information; incidents involving death or injury; aggregate data on property damage claims, consumer complaints, warranty claims, and field reports; and, copies of field reports involving specified vehicle components, a fire, or a rollover. -
The National Highway Traffic Safety Administration has issued a $3.5 million fine for Ferrari as it failed to comply with oversight requirements. The agency announced today that the Italian sports car maker had not submitted early warning reports for the past three years. These reports are important for NHTSA as it helps them identify potential or existing safety problems. Federal law requires manufacturers these reports quarterly. Previously, Ferrari was qualified as a a small-volume manufacturer which exempted them from providing these reports. However, Ferrari was still required to notify the agency of any fatal accidents involving its vehicles, something it didn't do for three accidents in this time. Also, Ferrari lost its small-volume manufacturer exemption when it became part of Fiat in 2011. "There is no excuse for failing to follow laws created to keep drivers safe, and our aggressive enforcement action today underscores the point that all automakers will be held accountable if they fail to do their part in our mission to keep Americans safe on the road," said U.S. Transportation Secretary Anthony Foxx. Ferrari spokesperson Krista Florin said in a statement that the missed reports were unintended, and that the automaker had implemented new procedures to "ensure full compliance in the future." Source: Reuters, National Highway Traffic Safety Administration William Maley is a staff writer for Cheers & Gears. He can be reached [email protected] or you can follow him on twitter at @realmudmonster. Press Release is on Page 2 NHTSA Fines Ferrari $3.5 Million for Failing to Submit Early Warning Reports Automaker Did Not Submit Required Safety Information for Three Years WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today announced that Ferrari will pay a $3.5 million civil penalty and has been ordered to comply with NHTSA oversight requirements as set forth in a Consent Order for failing to submit early warning reports (EWR reports) identifying potential or actual safety issues. Federal law requires large manufacturers and affiliates of large manufacturers to submit comprehensive EWR reports on a quarterly basis, in order to provide notice to the Department of potential safety concerns. Ferrari, an affiliate of Chrysler, admitted that it violated the law when it failed to submit required reports to NHTSA over a three-year period, and failed to report three fatal incidents. Until Fiat (which includes Ferrari since 2011) acquired Chrysler, Ferrari qualified as a small volume manufacturer and was not required to file quarterly EWR reports. However, while Ferrari was not required to file quarterly reports, it must report fatal incidents nonetheless. "There is no excuse for failing to follow laws created to keep drivers safe, and our aggressive enforcement action today underscores the point that all automakers will be held accountable if they fail to do their part in our mission to keep Americans safe on the road," said U.S. Transportation Secretary Anthony Foxx. In addition to the civil penalty, the Consent Order requires the automaker to improve its processes for EWR reporting, to train personnel on the EWR requirements, to communicate these improvements to NHTSA, and to retroactively submit all EWR reports. The Consent Order is immediately enforceable in federal court if any terms are violated. "The information included in early warning reports is an essential tool in tracking down dangerous defects in vehicles," added NHTSA Deputy Administrator David Friedman. "Early warning reports are like NHTSA's radar, helping us to find unsafe vehicles and make sure they are fixed. Companies that violate the law and fail to comply will be subject to comparable swift NHTSA enforcement action." EWR reports are required under the Transportation Recall Enhancement, Accountability, and Documentation (TREAD) Act of 2000. The law requires quarterly reporting of: production information; incidents involving death or injury; aggregate data on property damage claims, consumer complaints, warranty claims, and field reports; and, copies of field reports involving specified vehicle components, a fire, or a rollover. View full article
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The Detroit News is reporting that the National Highway Traffic Safety Administration has ended the daily fine of $7,000 to General Motors after the company turned over the docements and answered the 107 detailed questions about its recall. A Transportation Department spokeswoman said the daily fine ended on June 5th when GM handed over the 315-page internal report from Anton Valukas. “We have what we asked for. The (GM) report is consistent with what we said a few weeks ago, which is there are some culture issues,” said Anthony Foxx, U.S. Transport Secretary. The total amount GM has pay to NHTSA? Around $420,000 which is due on July 4th. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. -
The Detroit News is reporting that the National Highway Traffic Safety Administration has ended the daily fine of $7,000 to General Motors after the company turned over the docements and answered the 107 detailed questions about its recall. A Transportation Department spokeswoman said the daily fine ended on June 5th when GM handed over the 315-page internal report from Anton Valukas. “We have what we asked for. The (GM) report is consistent with what we said a few weeks ago, which is there are some culture issues,” said Anthony Foxx, U.S. Transport Secretary. The total amount GM has pay to NHTSA? Around $420,000 which is due on July 4th. Source: The Detroit News William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] or you can follow him on twitter at @realmudmonster. View full article
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General Motors has agreed to pay a $35 million fine over its handling of the ignition switch recall. This amount represents the maximum fine issued by the Government. "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said U.S. Transportation Secretary Foxx. The ignition switch recall covers 2.6 million Chevrolet Cobalt, HHR, Pontiac G5, Solstice, Saturn Ion, and Sky models built from the 2005 to 2011 model years. This problem is linked to 31 accidents and 13 deaths. "No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle," said NHTSA Acting Administrator David Friedman. "It's critical to the safety of the driving public that manufacturers promptly report and remedy safety-related defects that have the potential to lead to deaths or injuries on our nation's highways." As part of the agreement, GM will also, Share results of the internal probe into why the recalls were delayed with NHTSA Make "significant and wide-ranging" changes to how it finds defects and announces recalls Work on increasing efforts to contact owners of the affected vehicles about the problem Pay an additional amount of money to the Government for withholding information “We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety. We will emerge from this situation a stronger company,” said GM CEO Mary Barra in a press release. Source: General Motors, National Highway Traffic Safety Administration William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 GM Signs Consent Order with National Highway Traffic Safety Administration DETROIT – General Motors Co. (NYSE: GM) has come to an agreement with the National Highway Traffic Safety Administration (NHTSA) for failing to report in a timely manner the ignition switch defect. As part of this agreement, GM will pay a $35 million fine. “We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety,” said GM CEO Mary Barra. “We will emerge from this situation a stronger company.” Working with NHTSA, GM has already begun reviewing processes and policies to avoid future recalls of this nature. “We are working hard to improve our ability to identify and respond to safety issues,” said Jeff Boyer, vice president of Global Vehicle Safety, who is assigned to integrate safety policies across the company. “Among other efforts, GM has created a new group, the Global Product Integrity unit, to innovate our safety oversight; we are encouraging and empowering our employees to raise their hands to address safety concerns through our Speak Up for Safety initiative, and we have set new requirements for our engineers to attain Black Belt certification through Design for Six Sigma.” Having signed this agreement, GM now has its sights set on effectively serving customers and completing the ignition switch recall. “GM’s ultimate goal is to create an exemplary process and produce the safest cars for our customers – they deserve no less,” said Barra. U.S. Department of Transportation Announces Record Fines, Unprecedented Oversight Requirements in GM Investigation Friday, May 16, 2014 General Motors agrees to pay maximum $35 million penalty for violating federal safety laws in Chevrolet Cobalt investigation WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today announced that General Motors (GM) has agreed to pay a record $35 million civil penalty and to take part in unprecedented oversight requirements as a result of findings from NHTSA's timeliness investigation regarding the Chevrolet Cobalt and the automaker's failure to report a safety defect in the vehicle to the federal government in a timely manner. The defect resulted in the non-deployment of airbags in certain Chevrolet Cobalt and other GM models. This action represents the single highest civil penalty amount ever paid as a result of a NHTSA investigation of violations stemming from a recall. As part of today's agreement, set forth in a Consent Order signed with NHTSA, the agency also ordered GM to make significant and wide-ranging internal changes to its review of safety-related issues in the United States, and to improve its ability to take into account the possible consequences of potential safety-related defects. GM will also pay additional civil penalties for failing to respond on time to the agency's document demands during NHTSA's investigation. "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said U.S. Transportation Secretary Foxx. "While we will continue to aggressively monitor GM's efforts in this case, we also urge Congress to support our GROW AMERICA Act, which would increase the penalties we could levy in cases like this from $35 million to $300 million, sending an even stronger message that delays will not be tolerated." Federal law requires all auto manufacturers to notify NHTSA within five business days of determining that a safety-related defect exists or that a vehicle is not in compliance with federal motor vehicle safety standards and to promptly conduct a recall. GM admits in the Consent Order that it did not do so. Today's action is historic in that the provisions of the Consent Order will be immediately enforceable in federal court if GM does not fully comply. The Consent Order will hold GM accountable, push the automaker to make needed institutional change, and ensure that replacement parts are produced quickly and recalled vehicles are repaired promptly. "No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle," said NHTSA Acting Administrator David Friedman. "It's critical to the safety of the driving public that manufacturers promptly report and remedy safety-related defects that have the potential to lead to deaths or injuries on our nation's highways." In the Consent Order, GM agreed to provide NHTSA with full access to the results of GM's internal investigation into this recall, to take steps to ensure its employees report safety-related concerns to management, and to speed up the process for GM to decide whether to recall vehicles. The Consent Order also requires GM to notify NHTSA of changes to its schedule for completing production of repair parts by October 4. GM must also take steps to maximize the number of vehicle owners who bring in their vehicles for repair, including targeted outreach to non-English speakers, maintaining up-to-date information on its website, and engaging with vehicle owners through the media. The Consent Order requires GM to submit reports and meet with NHTSA so that the agency may monitor the progress of GM's recall and other actions required by the consent order. Both in 2007 and again in 2010, NHTSA reviewed data related to the non-deployment of airbags in certain Chevy Cobalt models but each time, determined that it lacked the data necessary to open a formal investigation. However, on February 7, 2014, GM announced it would recall certain model vehicles for a defect where the vehicle's ignition switch may unintentionally move out of the "run" position that could result in the air bag not deploying in the event of a crash. GM had failed to advise NHTSA of this defect at the time of the agency's earlier reviews. After review and consultation by NHTSA, GM twice expanded the recall to include a total of 2,190,934 vehicles in the United States. The GM recall covers the 2005-2010 Chevrolet Cobalt, 2007-2010 Pontiac G5, 2003-2007 Saturn Ion, 2006-2011 Chevrolet HHR, 2006-2010 Pontiac Solstice and 2007-2010 Saturn Sky vehicles. Over the past ten years, NHTSA defect investigations resulted in 1,299 recalls involving more than 95 million vehicles and items of motor vehicle equipment, which has helped the agency to reduce vehicle fatalities to historic, all-time lows. Including today's consent order, the agency has obtained record fines of $124.5 million in the last five years from automakers who have failed to promptly report defects to NHTSA. -
General Motors has agreed to pay a $35 million fine over its handling of the ignition switch recall. This amount represents the maximum fine issued by the Government. "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said U.S. Transportation Secretary Foxx. The ignition switch recall covers 2.6 million Chevrolet Cobalt, HHR, Pontiac G5, Solstice, Saturn Ion, and Sky models built from the 2005 to 2011 model years. This problem is linked to 31 accidents and 13 deaths. "No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle," said NHTSA Acting Administrator David Friedman. "It's critical to the safety of the driving public that manufacturers promptly report and remedy safety-related defects that have the potential to lead to deaths or injuries on our nation's highways." As part of the agreement, GM will also, Share results of the internal probe into why the recalls were delayed with NHTSA Make "significant and wide-ranging" changes to how it finds defects and announces recalls Work on increasing efforts to contact owners of the affected vehicles about the problem Pay an additional amount of money to the Government for withholding information “We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety. We will emerge from this situation a stronger company,” said GM CEO Mary Barra in a press release. Source: General Motors, National Highway Traffic Safety Administration William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected] you can follow him on twitter at @realmudmonster. Press Release is on Page 2 GM Signs Consent Order with National Highway Traffic Safety Administration DETROIT – General Motors Co. (NYSE: GM) has come to an agreement with the National Highway Traffic Safety Administration (NHTSA) for failing to report in a timely manner the ignition switch defect. As part of this agreement, GM will pay a $35 million fine. “We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety,” said GM CEO Mary Barra. “We will emerge from this situation a stronger company.” Working with NHTSA, GM has already begun reviewing processes and policies to avoid future recalls of this nature. “We are working hard to improve our ability to identify and respond to safety issues,” said Jeff Boyer, vice president of Global Vehicle Safety, who is assigned to integrate safety policies across the company. “Among other efforts, GM has created a new group, the Global Product Integrity unit, to innovate our safety oversight; we are encouraging and empowering our employees to raise their hands to address safety concerns through our Speak Up for Safety initiative, and we have set new requirements for our engineers to attain Black Belt certification through Design for Six Sigma.” Having signed this agreement, GM now has its sights set on effectively serving customers and completing the ignition switch recall. “GM’s ultimate goal is to create an exemplary process and produce the safest cars for our customers – they deserve no less,” said Barra. U.S. Department of Transportation Announces Record Fines, Unprecedented Oversight Requirements in GM Investigation Friday, May 16, 2014 General Motors agrees to pay maximum $35 million penalty for violating federal safety laws in Chevrolet Cobalt investigation WASHINGTON – The U.S. Department of Transportation's National Highway Traffic Safety Administration (NHTSA) today announced that General Motors (GM) has agreed to pay a record $35 million civil penalty and to take part in unprecedented oversight requirements as a result of findings from NHTSA's timeliness investigation regarding the Chevrolet Cobalt and the automaker's failure to report a safety defect in the vehicle to the federal government in a timely manner. The defect resulted in the non-deployment of airbags in certain Chevrolet Cobalt and other GM models. This action represents the single highest civil penalty amount ever paid as a result of a NHTSA investigation of violations stemming from a recall. As part of today's agreement, set forth in a Consent Order signed with NHTSA, the agency also ordered GM to make significant and wide-ranging internal changes to its review of safety-related issues in the United States, and to improve its ability to take into account the possible consequences of potential safety-related defects. GM will also pay additional civil penalties for failing to respond on time to the agency's document demands during NHTSA's investigation. "Safety is our top priority, and today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said U.S. Transportation Secretary Foxx. "While we will continue to aggressively monitor GM's efforts in this case, we also urge Congress to support our GROW AMERICA Act, which would increase the penalties we could levy in cases like this from $35 million to $300 million, sending an even stronger message that delays will not be tolerated." Federal law requires all auto manufacturers to notify NHTSA within five business days of determining that a safety-related defect exists or that a vehicle is not in compliance with federal motor vehicle safety standards and to promptly conduct a recall. GM admits in the Consent Order that it did not do so. Today's action is historic in that the provisions of the Consent Order will be immediately enforceable in federal court if GM does not fully comply. The Consent Order will hold GM accountable, push the automaker to make needed institutional change, and ensure that replacement parts are produced quickly and recalled vehicles are repaired promptly. "No excuse, process, or organizational structure will be allowed to stand in the way of any company meeting their obligation to quickly find and fix safety issues in a vehicle," said NHTSA Acting Administrator David Friedman. "It's critical to the safety of the driving public that manufacturers promptly report and remedy safety-related defects that have the potential to lead to deaths or injuries on our nation's highways." In the Consent Order, GM agreed to provide NHTSA with full access to the results of GM's internal investigation into this recall, to take steps to ensure its employees report safety-related concerns to management, and to speed up the process for GM to decide whether to recall vehicles. The Consent Order also requires GM to notify NHTSA of changes to its schedule for completing production of repair parts by October 4. GM must also take steps to maximize the number of vehicle owners who bring in their vehicles for repair, including targeted outreach to non-English speakers, maintaining up-to-date information on its website, and engaging with vehicle owners through the media. The Consent Order requires GM to submit reports and meet with NHTSA so that the agency may monitor the progress of GM's recall and other actions required by the consent order. Both in 2007 and again in 2010, NHTSA reviewed data related to the non-deployment of airbags in certain Chevy Cobalt models but each time, determined that it lacked the data necessary to open a formal investigation. However, on February 7, 2014, GM announced it would recall certain model vehicles for a defect where the vehicle's ignition switch may unintentionally move out of the "run" position that could result in the air bag not deploying in the event of a crash. GM had failed to advise NHTSA of this defect at the time of the agency's earlier reviews. After review and consultation by NHTSA, GM twice expanded the recall to include a total of 2,190,934 vehicles in the United States. The GM recall covers the 2005-2010 Chevrolet Cobalt, 2007-2010 Pontiac G5, 2003-2007 Saturn Ion, 2006-2011 Chevrolet HHR, 2006-2010 Pontiac Solstice and 2007-2010 Saturn Sky vehicles. Over the past ten years, NHTSA defect investigations resulted in 1,299 recalls involving more than 95 million vehicles and items of motor vehicle equipment, which has helped the agency to reduce vehicle fatalities to historic, all-time lows. Including today's consent order, the agency has obtained record fines of $124.5 million in the last five years from automakers who have failed to promptly report defects to NHTSA. View full article
