This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

GM Shares Rise After It Agrees to $35M Fine for Ignition Switch Defect

Stocks in this article: GM

Story has been updated with government announcement and GM share price fluctuation

DETROIT (TheStreet)-- General Motors  (GM) said Friday it has agreed to pay a $35 million fine to the National Highway Traffic Safety Administration for failing to report its ignition switch defect in a timely manner.

The defect resulted in at least 13 deaths, according to GM. The penalty is the maximum allowed under the law. Trial lawyers said at least 53 have been killed.

"We have learned a great deal from this recall. We will now focus on the goal of becoming an industry leader in safety," said GM CEO Mary Barra, in a prepared statement. "We will emerge from this situation a stronger company."

Transportation Secretary Anthony Foxx said, in a prepared statement, that the " announcement puts all manufacturers on notice that they will be held accountable if they fail to quickly report and address safety-related defects."

GM shares were trading higher late Friday morning, up 3 cents to $34.39, possibly reflecting the relatively small scale of the fine. Shares closed Thursday at $34.36, opened Friday at $33.75 and dipped as low as $33.49 during the morning.

NHTSA said GM must make "significant and wide-ranging internal changes" to its safety review process. It began fining GM $7,000 a day in early April after it missed the deadline for reporting the defect.

The automaker said it is working with NHTSA and has begun reviewing processes and policies to avoid future recalls of this nature.

"We are working hard to improve our ability to identify and respond to safety issues," said Jeff Boyer, vice president of Global Vehicle Safety. "GM has created a new group, the Global Product Integrity unit, to innovate our safety oversight; we are encouraging and empowering our employees to raise their hands to address safety concerns through our Speak Up for Safety initiative, and we have set new requirements for our engineers to attain Black Belt certification through Design for Six Sigma."

-- Written by Ted Reed in Charlotte, N.C.

To contact this writer, click here.

Follow @tedreednc

>>Read More: GM Beats Estimates Despite 86% Drop in Net Income

>>Read More: Why Alan Mulally and Ford Is a Better Story Than Donald Sterling and the Clippers

>>Read More: GM's ProActive Recalls Are a 'Doubled-Edged Sword,' Analyst Says

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs