GM faces record fine over 'criminal' ignition defects
US Department of Justice investigators have identified criminal wrongdoing in General Motors’ failure to announce technical faults in an ignition switch, which is tied to scores of deaths.
The defective ignition switch issue has been linked to 104 deaths and 157 serious injuries, the New York Times reported on Friday.
The investigators are negotiating with the automaker what is expected to be a record penalty, said the report, which cited people who were briefed on the inquiry.
According to the report, a settlement between the department and GM could be reached in coming weeks.
A number of former GM employees are also reportedly under investigation and may face criminal charges regarding the issue.
Federal prosecutors launched an enquiry into the matter last year to determine whether the automaker purposely tried to hide the scale of the problem.
The officials with knowledge of the details of the enquiry say that it seems GM has actively tried to misled prosecutors and keep the extent of the problem a secret.
They also said that the company could receive a penalty, which could exceed the $1.2 billion fine Toyota paid last year for concealing unintended acceleration faults in its vehicles.
The car manufacturing giant is also accused of fraud during its bankruptcy proceedings in 2009.
In April, a bankruptcy court, however, ruled in favor of the company and gave it protection against numerous lawsuits.
Even if a settlement with the Justice Department is reached, GM will still have to face numerous consumer fraud investigations, some of them linked to even more casualties.
Last year alone, the company spent nearly $3 billion on recalls and safety-related issues.
The scale of the problem was so vast that GM had to pay $600 million compensating for the switch-defect victims and another $35 million to the National Highway Traffic Administration.
Faulty ignitions and other technical problems forced General Motors to recall a record 30 million cars in 2014.
MTM/GJH
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