Government fines GM maximum $35 million in safety case


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WASHINGTON (AP) — Transportation Secretary Anthony Foxx says "silence can kill," literally -- and that's why government safety regulators have fined General Motors $35 million.

Foxx says GM broke the law by waiting too long to take action on a problem with ignition switches linked to at least 13 deaths.

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.

As part of an agreement announced today by the Transportation Department and the National Highway Traffic Safety Administration, GM also has agreed to government oversight on safety issues. And it is supposed to report safety problems much more quickly than in the past.

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.

Lawyers suing the company say the death toll from the faulty switches is at least 53.

A consumer safety advocate is hoping a Justice Department investigation will result in a much stiffer penalty. Clarence Ditlow of the Center for Auto Safety wants a fine of $1 billion or more -- along with individual criminal charges against GM engineers and their superiors.

%@AP Links

156-a-12-(Transportation Secretary Anthony Foxx, at news conference)-"silence can kill"-Transportation Secretary Anthony Foxx says companies must immediately report any safety issues they know about. ((longer version of cut in wrap)) (16 May 2014)

<<CUT *156 (05/16/14)££ 00:12 "silence can kill"

157-a-10-(National Highway Traffic Safety Administration Acting Administrator David Friedman, at news conference)-"address safety defects"-The acting administrator of the National Highway Traffic Safety Administration, David Friedman, says the large fine sends a clear message. (16 May 2014)

<<CUT *157 (05/16/14)££ 00:10 "address safety defects"

APPHOTO WX101: FILE - This March 14, 2014 file photo shows Transportation Secretary Anthony Foxx on Capitol Hill in Washington. U.S. safety regulators on Friday, May 16, 2014 announced they have fined General Motors $35 million for delays in recalling small cars with faulty ignition switches that are linked to at least 13 deaths. It's the maximum penalty that the government can impose and the first time an automaker has been fined that much. (AP Photo/J. Scott Applewhite, File) (13 Mar 2014)

<<APPHOTO WX101 (03/13/14)££

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