Too many keys on the key chain lead to the disabling of airbags as the ignition switch thinks the car is off.
The National Highway Traffic Safety Administration, aka NHTSA, is opening an investigation into the conduct of GM over its failure to recall 1.6 million small cars with a defective ignition switch that may suddenly shut off and/or render the airbag system inoperative.
At least 13 deaths and 31 wrecks are alleged from the safety defect that GM has known about since 2004 before the cars went on sale. It refused to recall the vehicles for a decade, according to a timeline GM released early this week. GM knew of 10 accidents where Cobalts were in front-end crashes but the air bags did not inflate by the end of 2007. GM even went so far as to approve a redesign of the switch in 2005, but never put a revised version into production for reasons that remain unclear but are likely damning.
Under U.S. regulations, automakers have five business days to issue a recall plan to NHTSA after becoming aware of a safety defect. Thus, it seems evident that GM will face huge fines from NHTSA, perhaps topping the record set by Toyota for its stuck accelerator pedal cover-up, which ultimately saw NHTSA assess Toyota almost $50 million in civil fines for various coverups and delays. The maximum for a single incident is $35 million, which critics say is laughable for multinational auto companies such as GM, and the reason why prompt action for expensive and image damaging recalls is not taken.
GM also faces possible criminal charges against it, although NHTSA has never taken this step over a botched U.S. safety matter. The agency has been accused of being the “lap dog” of the auto industry during Congressional hearings into the sordid Toyota matter, where ex Toyota employees working for NHTSA in revolving-door Washington inhibited agency investigations. Questions are also being raised about NHTSA’s lack of action over the defective ignition switches that it had reports on.
The recalled vehicles are small cars where an airbag is perhaps more important during a crash than on larger ones, including Chevrolet Cobalt and Pontiac G5 cars from the 2005-2007 model years, Saturn Ion compact sedans from 2003-2007, as well as 2006-2007 Chevrolet HHR SUVs and Pontiac Solstice and Saturn Sky sports cars sold in North America. Globally more cars outside of NHTSA’s authority are involved.
As to the lawsuits, GM stockholders will pay dearly for the lack of action as product liability lawyers and the alleged safety advocates who work for them now see multimillion dollar contingency fees within reach.
For the second time in a week, GM issued an apology after NHTSA inevitably opened a probe of unspecified dimensions, in an attempt to mitigate what remains a severe blow to its reputation.
“We deeply regret the events that led to the recall and this investigation. As our detailed chronology indicates, we intend to fully cooperate [they now have no choice – editor] with NHTSA and we welcome the opportunity to help the agency have a full understanding of the facts,” GM said in a written statement.
This safety cockup also casts doubts about the integrity of GM’s engineering and management methods. GM says it will conduct a thorough review because its processes were not robust enough.
See:
- BMW Follows Toyota by Paying $3 Million Fine for not Reporting Known Safety Defects within Five Days to NHTSA
- Ford to Pay Record $17.35 Million NHTSA Fine on Recall
