US prosecutors move toward criminal probe of GM over ignition switch recall
Federal prosecutors in New York are examining whether General Motors could face criminal charges for its delayed response to a deadly ignition switch defect linked to at least 13 deaths.
Federal prosecutors in New York are preparing to open a criminal investigation into General Motors, focusing on the company’s decade-long delay in recalling vehicles with faulty ignition switches linked to at least 13 deaths. The move, reported by Reuters citing a source familiar with the matter, marks a sharp escalation in the scrutiny facing GM over its handling of the defect.
The prosecutors are investigating whether GM failed to properly disclose the ignition switch problem, or actively concealed it, despite evidence that some employees were aware of the defect for years before the company acted. The ignition switch issue can cause engines to shut off unexpectedly, disabling airbags and other safety systems. GM began recalling affected models in February 2014, but internal documents suggest the company had been aware of the problem for more than a decade.
Multiple investigations target GM's recall response
The federal criminal probe is one of several investigations now underway. GM’s new CEO, Mary Barra, has ordered an internal review. The National Highway Traffic Safety Administration (NHTSA) is conducting its own inquiry into whether GM met its legal obligations for timely notification and recall. Meanwhile, the US House Energy and Commerce Committee has demanded documents and responses from both GM and the NHTSA within two weeks, seeking to clarify how the defect was handled and what information was shared with regulators and the public.
The ignition switch defect has already triggered the recall of more than 1.6 million vehicles, including Chevrolet Cobalt and Saturn Ion models. The defective switches can be inadvertently moved from the "run" to the "accessory" position, shutting off the engine and disabling power steering, brakes and airbags. GM has acknowledged the link between the defect and at least 13 deaths, though external reports have suggested the true figure may be higher.
Potential consequences for GM and its leadership
While the immediate financial impact of the criminal investigation is unclear, analysts warn that the reputational damage could be more severe if the story remains in the headlines. The outcome of the probe could also affect investor confidence and future sales. GM has already responded by appointing a new vice president of global vehicle safety, tasked with improving the company’s ability to identify and act on safety issues. For further background on the reputational risks facing GM, seeGM Faces Reputation Risk as Ignition Switch Recall Widens.
The federal criminal investigation adds a new layer of complexity to GM’s response. The company, regulators and lawmakers will now be forced to address not only technical and procedural failures, but also questions about legal responsibility and corporate accountability. As the criminal probe develops, further details about who knew what, and when, are expected to emerge.
