agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM Legal Department Under Scrutiny in Company's Recall Probe

May 21, 2014
2 min to read


Via Reuters:


General Motors' legal department is the focus of an internal inquiry into how the company handled a vehicle safety defect linked to 13 deaths, the New York Times reported, citing two people with knowledge of the inquiry.

Ad Loading...


The U.S. government hit the automaker with a $35 million fine on Friday for its delayed response to an ignition switch defect in millions of vehicles. Regulators accused company officials of concealing the problem.


The largest U.S. automaker originally noticed the defect more than a decade ago but issued the first recalls only in February of this year despite years of consumer complaints.


In an article published on Saturday, the Times said a review of internal documents, emails and interviews showed that high-ranking officials "particularly in GM's legal department, led by the general counsel Michael P. Millikin, acted with increasing urgency in the last 12 months to grapple with the spreading impact of the ignition problem."


The newspaper said a number of GM departments stepped up efforts to fix the switches when depositions threatened to ensnare senior officials, and company lawyers moved to keep its actions secret from families of crash victims and others.


GM faces other federal investigations into its handling of the recall, which could produce more severe punishments. The $35 million fine was the maximum the U.S. Transportation Department could impose.

Ad Loading...


U.S. Transportation Secretary Anthony Foxx said GM had broken the law and failed to meet its obligations to public safety.


GM's internal investigation is expected to be completed within the next two weeks. The U.S. Congress, Department of Justice, Securities and Exchange Commission and several states are also conducting investigations.


The Times said GM had declined to make Millikin or other executives available for interviews for its story. It said four senior executives have resigned or left the company since the recall began, including Jim Federico, a top engineer who avoided being deposed in a lawsuit last year when GM settled a case tied to a defective ignition switch.


The newspaper said GM lawyers unexpectedly approved the settlement last September in a lawsuit filed by the family of a Georgia woman who died in a Cobalt crash in 2010.


Documents indicate GM restarted its internal investigation because of information uncovered in the Georgia case, the Times said.

Ad Loading...


The faulty ignition switches on Chevrolet Cobalts, Saturn Ions and other GM vehicles can cause their engines to stall, which in turn prevents air bags from deploying during crashes. As well, power steering and power brakes do not operate when the ignition switch unexpectedly moves from the "on" position to "accessory."


More Industry

Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Ad Loading...
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
A fan of $100 bills sitting on a white envelope
Industryby Hannah MitchellAugust 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
Ad Loading...
newspaper advertisement circled in pink, Turn Listings into Leads, F&I and Showroom
Industryby Lauren LawrenceAugust 5, 2026

Structure Leads to Optimized Auto Listings

As the average car-buying journey has shifted to a blend of digital and retail, a dealership’s vehicle listings must be optimized to answer shoppers’ questions clearly and accurately.

Read More →
Photo of woman counting cash with a calculator sitting on a desk in front of her
Industryby Hannah MitchellJuly 30, 2026

Consumers Mixed on Economy, Finances

A July survey shows spotty sentiment of current and future conditions, in addition to demographic differences as overall opinion of present circumstances kept sliding.

Read More →
blue map of Europe with outline of an electric vehicle powertrain on top, Closing the Powertrain Gap, Agent Entrepreneur
Industryby Lauren LawrenceJuly 30, 2026

EVs Closing the European Gap

Electrified powertrains led June new-vehicle sales in Europe, reaching 26% of the market.

Read More →
Ad Loading...
a line of people sitting down with paperwork in their hands
Industryby Lauren LawrenceJuly 27, 2026

Early Intervention Saves Retention

Sales and service departments have the highest annual dealership turnover rates, according to a new industry report, costing money and time that could be better spent elsewhere.

Read More →
Ad Loading...