$900 Million in Penalties Handed Out in GM Ignition Switch Failure Case

Defective Car Parts

When people buy a new car or truck, they expect the vehicle to function as intended. However, problems are often discovered down the road that can put occupants’ safety at risk.

GM Ignition Switch Failures

The General Motors (GM) ignition switch debacle is a prime example of this phenomenon. An investigation determined the company withheld information from both federal officials and consumers about safety risks posed by faulty parts in their vehicles,

Several years ago, reports began to surface that ignition switches in certain makes and models of GM vehicles could turn to the “off” position while the vehicles were still in motion. In turn, drivers could lose control and the airbags could fail to deploy in the event of a collision.

The Fallout

The malfunctions resulted in thousands of accidents resulting in fatalities and even more injuries. A GM ignition switch recall was then initiated. GM later faced criminal charges related to the faulty parts and was recently sentenced in the matter.

According to USA Today, GM will pay $900 million in fines. The company was also required to admit they failed to inform the National Highway Traffic Safety Administration of issues with the ignition switches, and misled consumers about the hazards that the faulty parts could pose. GM officials will also have to restructure the company’s recall process.

The Future of Vehicle Safety

At Rainwater, Holt & Sexton, we believe in holding car and truck manufacturers accountable for safety. That’s why our Arkansas defective product lawyers are hopeful the penalties faced by GM will help create a sense of accountability among other businesses in the automotive industry.


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