Johan de Nysschen, General Motors Executive Vice President (Photo : Reuters//Rebecca Cook)
General Motors is reportedly on track for what could probably be a record penalty. It is expected to surpass the Toyota's $1.2 billion fine paid in 2014, along with the millions being paid to victims.
Federal investigators are said to have determined that GM has failed to disclose its ignition-switch defect which is linked to over 100 deaths, the New York Times reported, quoting persons briefed on the inquiry.
The said switches could easily be jarred from run to accessory position, just if even the car is jostled while driving. Due to which, the car's power steering, air bags and brakes will be disabled, resulting in accidents, leading to fatalities.
The United States Department of Justice is still reviewing evidence related to the matter and is weighing if it is individual GM employees who broke the law. GM's former employees are also under investigation and could likely face criminal charges. GM will reportedly either enter a deferred-prosecution agreement or plead guilty.
"We are cooperating fully with all requests, but we are unable to comment on the status of the investigation including timing," GM said in a statement, according to the USA Today.
The company recalled more than 2.6 million Chevrolet Cobalts and other vehicles back in February 2014, just weeks after the new CEO Mary Barra took over. However, with the defective switches, the recall campaign underwent an aggressive expansion to over 30 million vehicles worldwide, a record in the history of GM.
General Motors has already spent more than $3 billion last year just on recalls and other safety measures, including the $600 million expense in replacing the defective ignition-switch. Besides, the company has also paid a fine of $35 million to the National Highway Traffic Safety Administration, for failing to report the recall on time.
