New York City, NY — October 05, 2015 — General Motors has been grappling with the fallout of its ignition switch recall for more than two years, and now the manufacturer seems to finally be reaching a settlement with federal authorities. The Associated Press reports that the company is scheduled to pay a fine by September 24, in response to a recall of 2.6 million vehicles, including models under the Chevrolet brand.
The company is expected to pay $900 million over this case, with $1 million going to the families of victims of fatal accidents connected to these autos, and $625 million dedicated to additional compensation. The agreement comes after GM received a $35 million fine from the National Highway Traffic Safety Administration (NHTSA) last year, the highest civil penalty for recall-related actions.
A timeline from the AP shows the sequence of events leading to this agreement. The roots of the ignition switch recall trace back to 2002, when the offending switch design was first approved. The first death connected to these faulty systems was reported on July, 19, 2005. CEO Mary Barra reportedly didn’t learn about the switches until 2013.
Back in the 2014 NHTSA press release, acting administrator David Friedman affirmed the organization’s dedication to pursuing proper actions.
“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,” he said then. “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.”
