General Motors fined US$35m over delay in recall

US safety regulators have fined General Motors US$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.

But the amount is less than a day's revenue for the automaker, based on the US$37.4 billion it took in during the first quarter.

As part of a deal announced yesterday by the Transportation Department and National Highway Traffic Safety Administration (NHTSA), GM also agreed to government oversight on safety issues, and to report safety problems much faster than in the past.

NHTSA has been investigating GM's delayed recall of older small cars with defective ignition switches. GM has acknowledged knowing about the problem for at least a decade, but it didn't start recalling the cars until February of this year. The company says at least 13 people have died in crashes linked to the problem, but lawyers suing the company say the death toll is at least 53.

"Today's announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects," said Transportation Secretary Anthony Foxx.

The US$35 million penalty was doubled from last year. But Foxx still urged Congress to pass legislation that would raise the fine to US$300 million.