GM Fine is Only a Part of What Recalls Will Cost

Analyst says settlement leaves automaker open to civil lawsuits

General Motors CEO Mary Barra says the automaker will honor its settlement with the U.S. government over faulty ignition switches blamed for more than 100 deaths. GM will pay a $900 million fine and the Justice Department will defer criminal prosecution for at least three years. An independent monitor is supposed to make sure that GM complies with the settlement. Paul Eisenstein, publisher of The Detroit Bureau, tells WDET’s Pat Batcheller he’s not surprised the government is delaying prosecution, because that’s what it did in the Toyota sticky accelerator recalls. Eisenstein also talked about the impact the settlement will have on the industry, and predicted that the United Auto Workers would ratify a new contract with Fiat Chrysler. Click on the audio player to hear the conversation.

© General Motors



  • Pat Batcheller
    Pat Batcheller is a host and Senior News Editor for 101.9 WDET, presenting local news, traffic and weather updates during Morning Edition. He is an amateur musician.