U.S. Attorney Investigating General Motors Recall
Posted On behalf of Simien & Simien on Mar 12, 2014 in Automotive
For almost a decade GM was aware of faulty ignition switches in its Chevrolet HHR and Cobalt, Pontiac Solstice and G5, and Saturn Ion and Sky; however, GM failed to announce a recall until February 2014, and expanded the number of recalled cars in North America from 780,000 to 1.4 million and revealed further mortalities.
A federal prosecutor has launched a criminal investigation into General Motors' handling of a vehicle fault that resulted in at least 13 deaths, according to a source familiar with the matter.
The probe is by the U.S. attorney in Manhattan, CNN has learned.
The U.S. attorney's office declined to either confirm or deny it was pursuing an investigation, and a spokesman said the office generally does not speak about investigations in the early stages.
General Motors (GM, Fortune 500) spokesman Alan Adler said Tuesday night the company had no comment.
General Motors knew a decade ago of issues with the ignition switches of several popular models, including the Chevrolet Cobalt and HHR, Pontiac's G5 and Solstice, and Saturn's Sky and Ion.
It only announced a recall in February. Nearly two weeks later, it expanded the number of affected vehicles in North America from 780,000 to 1.4 million. It also disclosed additional deaths.
Federal law requires automakers notify a federal safety board within five days of discovering an issue.
GM's new CEO, Mary Barra, recently defended the company's actions in a letter to employees, saying it acted "without hesitation" and "well beyond" recommendations by technical experts. Another company official said GM's review of the issue "was not as robust as it should have been."
The criminal investigation would join reviews led by the National Transportation Safety Administration, Congress and an internal GM probe.
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