GM Faulty Ignition Switch Probe Expands
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Joe Raedle/Getty Images(NEW YORK) — General Motors is facing more questions and potential legal problems over the recall of 1.6 million compact cars for faulty ignition switches.
The Justice Department has launched an investigation that could lead to criminal charges.
“It’s incredible to me that General Motors could have ignored this defect for a decade,” says Joan Claybrook, former head of the National Highway Traffic Safety Administration.
The recall was announced last month, but the first problems emerged a decade ago when GM engineers found that a heavy key chain could turn off the engine and disable airbags.
GM shares fell more than 5 percent Tuesday — their sharpest one-day decline in over two years.
In addition to the Justice Department moves, the NHTSA has opened an investigation into whether the GM recall came far too late. Congressional hearings are also expected.
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