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Government fines GM maximum $35 million in safety case

Created: 05/16/2014 5:24 PM WHEC.com
By: Associated Press

GM is admitting that it took too long to tell regulators about a defect in an ignition switch in millions of cars. And it's promising to report problems more quickly in the future, under an agreement today with the Transportation Department.

The company is being hit with a record $35 million fine -- but safety advocates say that's too small to deter bad behavior by automakers.

The penalty is the maximum that the government can impose and it's the first time an automaker has been fined that much. But the amount is less than a day's revenue for GM.

The government has been investigating GM's delayed recall of 2.6 million older small cars with defective ignition switches. GM has acknowledged knowing that the switches had problems as early as 2001. But it didn't start recalling the cars until February of this year.





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