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From Products Liability Law Daily, May 21, 2015

NHTSA extends oversight of GM’s defect remedy processes

By Pamela C. Maloney, J.D.

Federal oversight of General Motors’ review, decision-making, and communications regarding potential vehicle safety issues has been extended for an additional year, NHTSA announced on the anniversary of GM’s historic agreement with the agency. In a May 14 letter, NHTSA required GM to continue submitting reports to and meeting with NHTSA so that the agency may monitor the progress of GM's investigation of potential safety issues and other actions required by NHTSA’s May 2014 Consent Order. NHTSA said that it extended its oversight because the consent order has proven to be a productive and effective tool to proactively and expeditiously address potential safety-related defects (NHTSA News Release, NHTSA 25-15, May 21, 2015).

In May, 2014, GM entered into a consent agreement with the agency to pay a record $35 million civil penalty and to take part in unprecedented oversight requirements as a result of findings from NHTSA's timeliness investigation regarding the Chevrolet Cobalt and the automaker's failure to report a safety defect in the vehicle to the federal government in a timely manner. The defect resulted in the non-deployment of airbags in certain Chevrolet Cobalt and other GM models. Today’s action is an extension of certain requirements of that agreement. Other requirements continue for an additional two years.

Companies: General Motors LLC

MainStory: TopStory MotorVehiclesNews

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