US safety regulators to keep GM under observation for another year image

Following the massive recalls triggered by GM’s faulty ignition switch, US NHTSA is keeping a close eye on the automaker since 2014 and it will do so until 2017.

The National Highway Traffic Safety Administration has put General Motors under a very tight safety oversight in 2014, after the Detroit-based automaker failed to promptly take actions over its faulty ignition switches. GM is bound to provide a monthly report on all its investigations over potentially safety issues, even before the company decides by itself to issue a recall campaign. In a letter reviewed by Reuters, the agency informed the automaker that NHTSA is extending its oversight by another year, until May 2017. The ignition defect affected 2.6 million vehicles in 2014 and has been linked to nearly 400 serious injuries and deaths. GM has acknowledged that some of its employees knew about the switch problem for years but failed to take action. It has already paid about 2 billion dollars in settlements and penalties in connection with the case.

NHTSA said in its letter that GM shares its belief that the meetings “have been useful to proactively and expeditiously address potential safety-related defects and to facilitate communication.” The company said it remained bound to the agreement to work closer with the US regulators to prevent any other safety-related flaws. “We have worked hard to build a productive and highly effective working relationship with the agency,” GM spokesman Jim Cain said.

Via Reuters