US Investigators Find Criminal Wrongdoing in GM Failure to Disclose Defect

MOSCOW (Sputnik) — US Justice Department investigators found criminal wrongdoing in General Motors’ failure to disclose an ignition problem in its cars that could have led to some 104 deaths, The New York Times reported Friday citing people briefed on the inquiry.

Such criminal wrongdoing could result in a record fine, with final settlement expected this summer, the newspaper said.

Some General Motors employees could face criminal charges as well.

In 2014, General Motors began recalling cars with faulty ignitions, including some 2.6 million Chevrolet Cobalts. The problem could unexpectedly switch off engines, disable power brakes and steering. Overall, some 60 million vehicle across the United States have been recalled due to the switch defect.

According to the newspaper, General Motors spent over $3 billion last year on solving the problems, while its penalty for a wrongdoing could cost the company over $1.2 billion.

Apart from the Justice Department penalty, General Motors now faces numerous personal injury and wrongful-death lawsuits.

General Motors, headquartered in Detroit, designs, manufactures and distributes vehicles and vehicle parts. The company produces cars in 37 countries under 13 well-known brands, including Opel, Chevrolet and Cadillac.