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GM Agrees to $35M Fine for Ignition-Switch Recall

GM will pay a fine as part of the U.S. governments investigation into how it handled the recall of 2.59 million small cars over faulty ignition switches.

By Jeff Plungis, Bloomberg | Updated on May 16, 2014
May 16 (Bloomberg) — General Motors Co. will agree to pay a fine of $35 million as part of the U.S. government’s investigation into how it handled the recall of 2.59 million small cars over faulty ignition switches, said a person familiar with the matter.

The National Highway Traffic Safety Administration has been investigating the time the largest U.S. automaker took to address engineering concerns and consumer complaints about engine stalling dating from 2004. At least 13 fatalities have been linked to the defect, which can deactivate air bags.

[Related: GM Recalls Additional 2.7M Vehicles, Brings Total to 11.1M]

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