Quote:
Originally Posted by Evergreen6
$35M is but a pittance for a company like GM. It was said that sum is the equivalent a single day's worth of revenue, and the fine supposedly wiped out profit for a single quarter's financial reporting period. Life will go on just fine at GM.
There's a fine line to walk with regards to laissez fair business practices and legislating and auditing every business decision that could affect safety. Corporations don't always do what is ethical; they don't have to. But, those kinds of decisions are hedges against stuff like this recent investigation. This bet didn't end well for GM.
For those too young to remember, look up the exploding GM C/K series pickup debacle from the 1980's. The fuel tanks were mounted between the frame rail and the bedside, and a direct impact to the side of the truck could cause the truck to explode. It killed a lot of people over a number of years. Reminds me very much of this latest investigation.
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That 35 million dollar fine is only the tip of the iceberg. That was the maximum fine allowed by the NHTSA. In comparison, Toyota was fined a little over 32 million dollars for the "sudden acceleration" fiasco, and ultimately payed out of a billion dollars.
And, the 13 deaths being reported, are only the ones GM is admitting were a result of the defective ignition cylinders. There are many more fatalities that they haven't admitted to, so expect that number to climb.