"Literally, silence can kill," Transportation Secretary Anthony Foxx said at a May 16 press conference as he announced the maximum legal penalty of $35 million against General Motors.

The nation's largest automaker had failed to properly report safety problems with defective ignition switches in millions of its small cars. The switches, linked to 13 deaths, had problems since 2001. Yet only this February did GM start recalling 2.6 million of the cars. Additionally, on May 20, GM issued other recalls, bringing this year's total to 13.5 million vehicles, the highest in GM's history.

GM is now under investigation by the Securities and Exchange Commission, the Justice Department and U.S. Attorney's Office in New York for the switch problem.

Continue Reading for Free

Register and gain access to:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.