GM Readies for New Fines Following Impala Recall

Following a $35 million fine for faulty ignition switches in its Chevrolet Cobalts in the spring, General Motors (GM) should start battening down the hatches and make ready for another slew of government penalties. An e-mail dated August 30, 2005, recently unearthed by a House subcommittee, shows that GM may have had knowledge of another ignition switch issue in its Chevy Impala family of cars, an issue which has led to many near accidents on the highway and, as the investigation goes forward, could be revealed to have caused deaths as well. 

GM’s Last Recall Foul-up Cost the Company Big Money
As aforementioned, the last recall cost GM a significant slap on the wrist. You might see the $35 million figure and think that’s payment enough for what is simply a mechanical issue, an issue the corporation tried to fix with recalls. However, with some estimates putting deaths caused by the ignition issue at 74, you might say that GM quite literally got away with murder. Another fine, even if it is equal to the previous one, will do little to actually change the way GM operates.

If, say, repeated recalls were to actually affect GM sales, then the company might have reason enough to change its ways. May 2014 sales actually picked up, showing 13% growth year-over-year, despite the recalls and bad publicity. GM has been among the many companies pushing for an easing of auto financing rules, a policy that has led to many drivers, regardless of whether they have good or bad credit scores, to qualify for an auto loan. That policy coupled with great marketing campaigns will likely continue to ensure that, regardless of fines for evil corporate behavior, GM will continue thriving.

Do you think the government is doing enough to punish GM? Let us know in the comments below. Alpari has been a forex broker of first choice since 1998. With competitive spreads and forex trading in 60+ currency pairs as well as over 250 financial instruments, this veteran forex powerhouse is renowned by forex traders all around the globe. Alpari is offering intuitive platforms, flexible trading conditions, educational materials, market analysis, and 24/7 customer service. It’s no surprise then why Alpari is trusted by millions for their forex trading endeavors.

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