Report: U.S. Extends Oversight Of General Motors
DETROIT (CBS Detroit) The National Highway Traffic Safety Administration reportedly sent a letter to General Motors May 14 opting to continue strong oversight of the automaker blamed for a faulty ignition switch that killed 104 people in separate accidents.
Per The Detroit News, GM officials will have to continue meeting with government officials every month for at least another year in a gathering where they must disclose all possible safety problems.
Last year, as part of the NHTSA agreement, GM consented to the meetings as well as a record-setting $35 million civil penalty for a slow decision to recall 2.6 million cars for ignition switch defects.
As for why the oversight is being continued, the letter says the feds found the order "to be a productive and effective tool to proactively and expeditiously address potential safety-related defects," according to the News.
GM is led by Mary Barra, 53, the first female to lead a major global automaker. Despite the ignition switch controversy, Barra's compensation more than tripled in 2014 to $15.8 million in her first year at the helm.
In other news, the automaker last month announced plans to invest $5.4 billion in U.S plant improvements during the next three years, including details of $783.5 million for three Michigan facilities.
"These investments are evidence of a company on the move, strategically investing in the people, tools and equipment to produce cars, trucks and crossovers that are built to win in the marketplace, with stunning design, quality and breakthrough technologies," GM North America President Alan Batey said at the Pontiac Metal Center, where $124 million will be invested.
GM will detail the remaining $4.6 billion and identify plants involved over the next several months.
"By working together, the UAW and GM are making a difference in communities across the United States," said UAW Vice President Cindy Estrada, who leads the union's GM Department. "These investments represent the power of our collaboration to create jobs and improve competitiveness, quality and our manufacturing base in this country."
