Justice Dept. Is Said to Look at G.M. Actions on Safety Flaws [USA]

Author: Bill Vlasic & Ben Protess, New York Times , Published on: 11 March 2014

The Justice Department has begun a criminal investigation into General Motors [G.M.]’ decade-long failure to address deadly safety problems before announcing a huge vehicle recall last month...The preliminary inquiry...is focused on whether G.M...failed to comply with laws requiring timely disclosure of vehicle defects [and]...whether G.M. misled federal regulators about the extent of the problems...The investigation is the latest in a widening series of threats to G.M. over its handling of faulty ignition switches...that the company says are linked to 31 accidents and 13 deaths...If the prosecutors in New York are unable to prove criminal liability, they could pursue civil charges instead. The federal inquiry is the Justice Department’s latest move to investigate how automakers have responded to recalls. The department, for example, is talking with Toyota about settling a four-year criminal investigation...related to unintended acceleration of its vehicles...

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Related companies: General Motors Toyota