Government fines GM $35Million for recall delay

[PREMiERdrum]

GM to Pay Feds Record $35 Million Fine Over Deadly Ignition Fails

By Matthew DeLuca

General Motors has agreed to pay a record $35 million penalty for delays in reporting flaws in ignition switches that have led to at least 13 deaths, the Department of Transportation announced on Friday.

 

http://www.nbcnews.com/storyline/gm-recall/gm-pay-feds-record-35-million-fine-over-deadly-ignition-n107106

Edited May 16, 2014 by PREMiERdrum

[NickF1011]

The conflict of interest is strong in this one.

[akirby]

Only $10.965B to go...........

Edited May 16, 2014 by akirby

[chevys]

Only $10.965B to go...........

Exactly what I was thinking. Thats one way to get back some of what they owe us.

[BrewfanGRB]

The hammer of the presumed Justice Department criminal penalties (ala Toyota) looms large. Given the SUA issues turned out to largely be moronic drivers (and not "robot car controlled by evil computer kills everyone") and this particular issue *appears* to be rather egregious actual behavior by GM, I wouldn't be surprised by a penalty that exceeds what Toyota was given.

[RichardJensen]

Toyota's behavior was no less negligent than GM's.

[Axle17]

Negligent or not I am not a big believer in fines as they will ultimately cost the workers and the consumers, who are not at fault. Jail and/or fines for those involved would serve us better.

[jpd80]

Negligent or not I am not a big believer in fines as they will ultimately cost the workers and the consumers, who are not at fault. Jail and/or fines for those involved would serve us better.

That's not the answer because a corporation can then simply blame employees, wash its hands and say job done.

 

The problem is a delinquent culture of middle and upper management that focuses on micro managed cost savings rather than seeing the big picture.

Edited May 18, 2014 by jpd80

[akirby]

Fines are different than a tax. They can't simply pass the cost to the consumer because they can't raise prices in such a competitive market.

[Axle17]

Fines are different than a tax. They can't simply pass the cost to the consumer because they can't raise prices in such a competitive market.

You make a point there. I do worry that non unionized companies tend to get some back from it's blue collar workers through delayed or lack of raises, changes to benefits.

[akirby]

You could say that about any cost of business though. It would be worse if it was a tax on all companies because then everyone would simply raise their costs accordingly and the consumer would end up paying for it, not the companies.

[Axle17]

You could say that about any cost of business though. It would be worse if it was a tax on all companies because then everyone would simply raise their costs accordingly and the consumer would end up paying for it, not the companies.

Again I agree with your point. I don't have the answer, just a worry that fines aren't the best way.