New Bill Could Make Late Recalls Much More Expensive for Automakers

So, it seems GM’s (decade-long) screwup regarding their failure to recall cars they knew had a life-threatening problem made additional waves – check out the story here and make sure you watch Jon Stewart’s video at the bottom of the page for extra background. Currently, the manufacturer is liable to pay $35 million (the maximum possible), in the form of a civil fine, but if a group of senators have their way, it could be raised to a more noticeable $300 million.

They motivate the proposal simply by comparing the fine with GM’s revenues ($37 billion in the first quarter of 2014) going on to say through Richard Blumenthal (D-Conn.) that  “this legislation will ensure that penalties are commensurate with wrongdoing and are meaningful financial deterrents to mistakes and mismanagement harming consumers. GM’s lesson to Congress is that concealment can kill.”

Another proponent, Edward J. Markey (D-Mass.) puts it just as bluntly; he says: “Only meaningful penalties can cause automakers to avoid concealing defects that lead to injury and death.”

For more background, you should also play the Consumer Reports video posted below. It gets a bit more… technical.

By Andrei Nedelea

Story References: Jalopnik & Blumenthal

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