GM to pay $35m in US transportation probeFriday 16 May 2014 16.47
General Motors will pay a $35 million fine as part of the US Transportation Department's investigation into the handling of faulty ignition switches in some of its vehicles, the car manufacturer and department officials today.
As part of the agreement, GM also agreed to take part in "unprecedented oversight requirements."
This includes notifying federal transportation officials of any changes to the company's schedule for completing repair parts by October 4, the department's National Highway Traffic Safety Administration said in a statement.
Shares of GM rose slightly to $34.39 after details of the penalty emerged. Earlier in the session, the shares had fallen nearly 2% in anticipation of the government's announcement.
In a statement, GM confirmed it would pay the fine.
"We are working hard to improve our ability to identify and respond to safety issues," said Jeff Boyer, vice president of Global Vehicle Safety, who is assigned to integrate safety policies across the company.
The Transportation Department, along with other US agencies, is investigating the timing of the car manufacturer's recall over faulty switches, which have been linked to at least 13 deaths.
GM engineers discovered the defect in 2001 and the company has been criticized for not recalling the vehicles earlier.
Congress, the Department of Justice, the US Securities and Exchange Commission and several states are conducting their own investigations, and GM's internal probe is expected to be completed within the next two weeks.
Today's announcement on GM came a day after the automaker GM announced five recalls covering nearly 3 million vehicles worldwide because of tail lamp malfunctions and potential faulty brakes.