GM hit with $35M fine over recall

The U.S. Department of Transportation today ordered General Motors to pay a $35 million fine — the maximum allowed by law — for failing to properly report an ignition-switch problem that has been linked to at least 13 deaths.

The nation's largest auto maker admitted it didn't report the problem within the legally required five days, even though the defect caused Saturn Ions, Chevrolet Cobalts and other compact cars to stall, lose power steering and brakes, and cause air bags to fail to deploy.

After company engineers detected the problem, GM waited for nearly a decade to order recalls of the vehicles.

The National Highway Transportation Safety Administration is fining the company $7,000 a day for failing to answer 107 questions about the ignition-switch recalls by April 3.

GM also is the subject of a criminal probe by the U.S. Justice Department and a civil investigation by the U.S. Securities and Exchange Commission.

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