MenuMENU
SearchSEARCH

GM Legal Department Under Scrutiny in Company's Recall Probe

May 21, 2014
2 min to read


Via Reuters:


General Motors' legal department is the focus of an internal inquiry into how the company handled a vehicle safety defect linked to 13 deaths, the New York Times reported, citing two people with knowledge of the inquiry.


The U.S. government hit the automaker with a $35 million fine on Friday for its delayed response to an ignition switch defect in millions of vehicles. Regulators accused company officials of concealing the problem.


The largest U.S. automaker originally noticed the defect more than a decade ago but issued the first recalls only in February of this year despite years of consumer complaints.


In an article published on Saturday, the Times said a review of internal documents, emails and interviews showed that high-ranking officials "particularly in GM's legal department, led by the general counsel Michael P. Millikin, acted with increasing urgency in the last 12 months to grapple with the spreading impact of the ignition problem."


The newspaper said a number of GM departments stepped up efforts to fix the switches when depositions threatened to ensnare senior officials, and company lawyers moved to keep its actions secret from families of crash victims and others.


GM faces other federal investigations into its handling of the recall, which could produce more severe punishments. The $35 million fine was the maximum the U.S. Transportation Department could impose.


U.S. Transportation Secretary Anthony Foxx said GM had broken the law and failed to meet its obligations to public safety.


GM's internal investigation is expected to be completed within the next two weeks. The U.S. Congress, Department of Justice, Securities and Exchange Commission and several states are also conducting investigations.


The Times said GM had declined to make Millikin or other executives available for interviews for its story. It said four senior executives have resigned or left the company since the recall began, including Jim Federico, a top engineer who avoided being deposed in a lawsuit last year when GM settled a case tied to a defective ignition switch.


The newspaper said GM lawyers unexpectedly approved the settlement last September in a lawsuit filed by the family of a Georgia woman who died in a Cobalt crash in 2010.


Documents indicate GM restarted its internal investigation because of information uncovered in the Georgia case, the Times said.


The faulty ignition switches on Chevrolet Cobalts, Saturn Ions and other GM vehicles can cause their engines to stall, which in turn prevents air bags from deploying during crashes. As well, power steering and power brakes do not operate when the ignition switch unexpectedly moves from the "on" position to "accessory."


More Industry

man holding up car keys
Industryby Lauren LawrenceJanuary 9, 2026

2026 Consumer Priorities Revealed

The Global Automotive Consumer Study shows that U.S. car shoppers value in-person dealership visits, crave more affordability, and are still hesitant about EV adoption.

Read More →
Aerial picture of Norway with Tesla logo in top right corner
Industryby Lauren LawrenceJanuary 8, 2026

Norway Auto Sales Almost Entirely Electric

Tesla is the No. 1 selling car brand in the Nordic country and dominates its EV market with a 19% market share. The Model Y is the top-selling vehicle, setting the record for single-car model registrations last year.

Read More →
Protective Life Corporation building
Industryby StaffJanuary 6, 2026

Protective Expands Reach With F&I Acquisition

Protective Life Corp. closed its acquisition of F&I company Portfolio Holding Inc., expanding its Asset Protection Division across the automotive, RV, power sports and marine sectors.

Read More →
Ad Loading...
Industryby Hannah MitchellJanuary 5, 2026

Late-Year Auto Sales Off

Purchases of new and used vehicles were down in December despite several positive market turns for consumers, whose optimism didn’t match their big-ticket spending.

Read More →
lineup of cars
Salesby Lauren LawrenceJanuary 5, 2026

Used-Car Prices Down in December

A Carfax index indicates that prices were higher than December 2024 but had been on a downward trend for the past few months.

Read More →
Split picture. Toyota on left. Lexus on right.
Industryby Lauren LawrenceJanuary 5, 2026

Dealer Survey Shows Increased Optimism

The 2025 Kerrigan Dealer poll reports the first improvement in valuation expectations since 2021, with 24% of dealers expecting an increase this year, up 41%.

Read More →
Ad Loading...
Vintage convertible driving along a desert highway, capturing the freedom and cultural impact of early American car travel.
IndustryJanuary 1, 2026

Driving America Forward

As America turns 250, explore how the automotive industry shaped jobs, culture, innovation, and mobility from Detroit assembly lines to today’s EV era.

Read More →
Industryby Hannah MitchellDecember 26, 2025

2025 Sales Expected Up

The series of sales spikes this year that were inspired by shifting U.S. policies defied the drag of those same changes, according to one early forecast.

Read More →
Industryby Hannah MitchellDecember 24, 2025

Tundras in Tokyo

Toyota said it plans to sell some U.S. made models to its home-country consumers starting next year, despite the vehicles’ large size for a small-car culture.

Read More →
Ad Loading...
Industryby StaffDecember 23, 2025

Black Book: Weekly Market Update

Despite the week's softening conditions, the market analyst said demand for used vehicles showed in competitive bidding for newer units in better condition.

Read More →