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| General Motors fined $35m over recall | General Motors fined $35m over recall |
| (35 minutes later) | |
| US car manufacturer General Motors has been fined $35m(£20.8m) for delays in recalling small cars with faulty ignition switches. | US car manufacturer General Motors has been fined $35m(£20.8m) for delays in recalling small cars with faulty ignition switches. |
| The fine is the maximum allowed by US law. | The fine is the maximum allowed by US law. |
| US car manufacturers are required to report safety defects within five days of discovering them. | US car manufacturers are required to report safety defects within five days of discovering them. |
| General Motors said it had already begun reviewing its processes and policies to avoid future delays to recalls of this nature. | General Motors said it had already begun reviewing its processes and policies to avoid future delays to recalls of this nature. |
| The National Highway Traffic Safety Administration Board (NHTSA) said it was the single highest civil penalty ever levied as a result of a recall investigation. | The National Highway Traffic Safety Administration Board (NHTSA) said it was the single highest civil penalty ever levied as a result of a recall 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 US Transportation Secretary Fox in a statement announcing the fine. | "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 US Transportation Secretary Fox in a statement announcing the fine. |
| As a result of the settlement, GM has also agreed to GM agreed to provide NHTSA with access to the results of its internal investigation as well as to speed up its process for determining when to recall vehicles. | As a result of the settlement, GM has also agreed to GM agreed to provide NHTSA with access to the results of its internal investigation as well as to speed up its process for determining when to recall vehicles. |
| "We have learned a great deal from this recall [and] we will emerge from this situation a stronger company" said GM chief executive Mary Barra in a statement. | "We have learned a great deal from this recall [and] we will emerge from this situation a stronger company" said GM chief executive Mary Barra in a statement. |
| Thirteen deaths | |
| GM was fined for not reporting a problem with ignition switches in its Chevrolet Cobalt and other models. | |
| The faulty switches led to the non-deployment of airbags and have been linked to at least 13 deaths in the US. | |
| The NHTSA received reports in 2007 and in 2010 about the problems with the switches, but each time it "determined it lacked the data necessary to open a formal investigation". | |
| Both GM and the agency have been criticised by customers for their slow response to investigating safety concerns. | |
| In April, Ms Barra testified in front of Congress and said she was "deeply sorry" over the company's handling of the defect. | |
| Last month, the company revealed it had taken a $1.3bn hit to cover the cost of recalling about 2.6 million cars with defective ignition switches. | |
| GM shares fell in the wake of the announcement, before recovering. |