General Motors Company (NYSE:GM): Hit By A Downfall

by Darcie | Thursday, Apr 10, 2014 | 3575 views

Boston, MA, 04/10/2014  (usastockreport) – General Motors Company (NYSE:GM) has evidently been hit by a downfall this year with its performance going low just like its counterparts in the automobile industry. Other that the regular decrease in the sales due to the winter chill, General Motors has a lot more to handle due to the ignition switch debacle.

107 Questions

The National Highway Traffic Safety Administration slapped General Motors Company (NYSE:GM) with a fine of $7k per day over the company’s response to the questionnaire with 107 queries, which the agency had filed a month ago. This is the maximum fine, which is allowed by the Congress. This was with regard to the controversy over the fact that General Motors waited until the second month of this year to start with the recalls when it had knowledge of the ignition switch problems since the year 2001 only.

The Agency announced this fine, four days after the deadline of the reply, which the company failed to meet. The ignition switches, which are defective, are reported to become an impediment for the deployment of air bags during car accidents. The NHTSA says that it has the capacity to direct the matter to Justice Department as soon as possible. It remains yet to be seen whether that happens or not.

The Ignition Switch Debacle

The National Highway Traffic Safety Administration has recently insisted that General Motors answer 107 queries about why it did not start the recalls until February 2014 when it already has the knowledge of the problems related to the ignition switch as early as 2001. The sales of the company has gone down drastically over the ignition switch debacle.

This problem has led to about 13 deaths in all and reportedly General Motors Company (NYSE:GM) has recalled around 2.5 million cars, which supposedly have the defective ignition switches. Though these 13 deaths are yet to be criminally investigated in order to find their connection to the faulty ignition switches.

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