General Motors continues to expand their recall for ignition switches that could unexpectedly shut of when the ignition key is bumped or when driving on rough road conditions. The problem has resulted in unexpected loss of engine power and can affect power steering, power braking, and airbag deployment. Until the problem can be fixed, drives are asked to remove all items from their key ring leaving only the vehicle key. Continue reading

A record fine of $35 million U.S. will be paid out by GM after a government investigation into how GM handled the recall of 2.59 million vehicles over faulty ignition switches. GM’s agreement with regulators also includes significant changes into how the automobile manufacturer reviews safety problems and decides when to issue a recall.

  • G.M. will be required to meet monthly with regulators and provide a list of every safety problem under consideration, as well as report on any new communications with their dealers.
  • The company must also improve information sharing across its different units, make recall decisions more quickly and revise its analysis practices to improve the ability to identify safety issues.

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Controversial supplier contract purchasing terms adopted by General Motors last year, will be changed by the automobile manufacturer after suppliers say that the terms expose them to greater warranty liability. Although the new terms and conditions applied to only new purchase contracts, supplier executives and attorneys said they were uncomfortable with elements of the new contract. The new terms and conditions extended the automaker’s rights giving GM more authority to recover warranty and safety recall costs, to acquire suppliers’ intellectual property rights, and to access their financial information. Continue reading