US Government Continues Keeping A Close Eye On GM

GM logo (Credit: General Motors )

Big Brother is keeping a close eye on General Motors, according to a new report from Detroit News. It was May of last year when GM agreed to hold monthly meetings with the National Highway Traffic Safety Administration (NHTSA) and provide regular “sweeping” disclosures to the federal safety agency, including anything that could affect vehicle safety. As part of the agreement, GM also paid $35 million for putting off the recall of 2.6 million cars that were affected by a faulty ignition switch. That action has been tied to 97 individuals’ deaths and 175 injuries, numbers that almost surely will grow even larger. Even though the agreement was only for a year, the head of NHTSA, Mark Rosekind, can opt to extend it for two additional years without any input from GM. Rosekind told Detroit News that a final decision is still up in the air as his agency is analyzing the situation. While it might sound like General Motors is in all kinds of trouble with the government, it seems the exact opposite might be true. Detroit News quoted Rosekind as saying that quite a bit of change has taken place inside GM under CEO Mary Barra’s watch, and that the company has been “forthcoming” about questions it’s been asked and suggestions given out by NHTSA. Not too long ago, many questioned whether GM was going to go under as it recalled more vehicles than it sold in 2014. On top of that, 50 state attorneys general, the Justice Department and the SEC are still investigating GM’s activities. Despite the obvious challenges, Barra pushed forward and kept saying that the “old GM” was dead and a “new GM” was doing things differently. As they say, the proof is in the pudding, and car shoppers lined up for many of the new models as they perceived the company ahs been making substantial progress. Even if the NHTSA continues peering over GM’s shoulder, it seems that the auto giant’s sales will continue to rise. Perhaps GM truly has turned over a new leaf.