GM Resolves SEC Ignition Switch Investigation
General Motors Co. (GM) announced that it has resolved a U.S. Securities and Exchange Commission investigation arising from the company’s 2014 ignition switch recalls by consenting to an administrative SEC Cease and Desist Order, without admitting or denying any wrongdoing.
The SEC settlement does not call into question any of GM’s current or prior financial statements or its disclosures, according to the company. Also, no material weakness or significant deficiency was found by the SEC.
Since the ignition switch recall, GM stated that it has been proactively and successfully resolving ignition switch issues with customers and regulators at both the state and federal level. GM will pay a civil penalty of $1 million as part of the settlement.
In the months immediately following the ignition switch recall, GM stated that it reorganized its vehicle engineering teams for greater transparency, urgency and accountability. This included creating a new global vehicle safety organization that is focused on executing zero-defect safety systems for vehicles and customers.
The safety organization includes an emerging issues and data analysis team and a re-engineered field investigation process. The company also created a “Speak Up For Safety” program that provides all employees and suppliers an opportunity to report or suggest any potential safety related items. More information can be found at www.gm.com.