Electric

The GM Ignition Switch Scandal is Just About Over. Here’s an Update

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Remember the GM ignition switch scandal of 2014? Where bad tech would turn the car off WHILE YOU WERE STILL DRIVING and then shut down the airbags?  Well, today GM and the SEC came to an agreement. From the company:

General Motors announced today that it has resolved a U.S. Securities and Exchange Commission investigation arising from the company’s 2014 ignition switch recalls by consenting to an administrative SEC Cease and Desist Order, without admitting or denying any wrongdoing.

The SEC settlement does not call into question any of GM’s current or prior financial statements or its disclosures.  Also, no material weakness or significant deficiency was found by the SEC.

Since the ignition switch recall, GM has been proactively and successfully resolving ignition switch issues with customers and regulators at both the state and federal level. GM will pay a civil penalty of $1 million as part of the settlement.

In the months immediately following the ignition switch recall, GM reorganized its vehicle engineering teams for greater transparency, urgency and accountability. This included creating a new global vehicle safety organization that is focused on executing zero-defect safety systems for vehicles and customers.

The safety organization includes an industry-leading emerging issues and data analysis team and a re-engineered field investigation process. The company also created a “Speak Up For Safety” program that provides all employees and suppliers an opportunity to report or suggest any potential safety related items.

 

The problem killed 124 people, and injured 275.  There’s litigation still in the pipeline, I’m sure.  But this chapter is over.

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