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   From: failed-bailout@barackobama.com   
      
   Recall that Obama decided he would remake GM in his own failed   
   image.   
      
   Besides agreeing to pay the penalty, GM admitted it broke the   
   law by failing to quickly tell the government about the problems   
   and now GM faces issues both in the near-term and longer term   
   related to the recall.   
      
   DETROIT — General Motors’ agreement to pay a $35 million federal   
   fine for concealing defects in small-car ignition switches and   
   to give the government greater oversight of its safety   
   procedures closes one chapter of the automaker’s recall saga.   
   But it’s far from over.   
      
   Besides agreeing to pay the penalty — the largest ever assessed   
   by the National Highway Traffic Safety Administration (NHTSA) —   
   GM admitted it broke the law by failing to quickly tell the   
   government about the problems.   
      
   The automaker agreed to report safety problems a lot faster — it   
   only started recalling 2.6 million small cars this February,   
   more than a decade after engineers first found a flaw in the   
   switches.   
      
   The switches in older-model small cars such as the Chevrolet   
   Cobalt and Saturn Ion can slip out of the “run” position and   
   shut down the cars’ engines. That disables the power-assisted   
   steering and brakes and can cause drivers to lose control. It   
   also disables the air bags.   
      
   The company says at least 13 people have died in crashes linked   
   to the problem, but trial lawyers suing the company say the   
   death toll is at least 53.   
      
   GM faces issues both in the near-term and longer term related to   
   the recall. Here’s a breakdown:   
      
   • The internal investigation: Late this month or early in June,   
   former U.S. Attorney Anton Valukas will finish an investigation   
   for GM into why the company delayed recalling the cars. GM has   
   promised an “unvarnished” report and said it will make at least   
   some of the results public. The company must provide NHTSA with   
   the full report.   
      
   • The criminal investigation: The U.S. Justice Department is   
   investigating GM’s conduct and may bring criminal charges. The   
   same team that got Toyota to agree to a $1.2 billion penalty for   
   hiding unintended acceleration problems from NHTSA is working on   
   the GM case. In the Toyota case, the company agreed to a long   
   statement of facts that included multiple allegations of cover-   
   ups. That investigation lasted four years.   
      
   • Congressional action: Two congressional subcommittees have   
   promised to call GM CEO Mary Barra back to Washington, D.C., for   
   further hearings after the Valukas report is released. At   
   hearings in April, Barra repeatedly said she couldn’t answer   
   questions because the internal investigation wasn’t finished.   
      
   • Recalls: Barra promoted longtime engineer Jeff Boyer as GM’s   
   safety chief, with the mandate to look into other safety issues   
   that should have resulted in recalls. On Thursday, GM announced   
   it would recall an additional 2.7 million cars and trucks. So   
   far this year, the company has had 24 recalls with a total of   
   11.2 million vehicles.   
      
   GM is working to get new ignition switches as well as parts for   
   the other recalls from suppliers. Its ignition switch maker   
   plans to add two assembly lines this summer to the one already   
   working. GM expects to have all the switches made by Oct. 4.   
      
   • Bottom line: So far, recall-related charges are up to $1.5   
   billion, mostly for repairing vehicles. GM also faces dozens of   
   lawsuits from families of those killed in crashes and from   
   people who were hurt. The company has hired compensation expert   
   Kenneth Feinberg to negotiate settlements.   
      
   Lawyers say they have at least 400 possible cases against GM.   
   That could cost the company billions. GM also faces lawsuits   
   from shareholders and people whose cars have lost value. In   
   addition, GM must pay NHTSA $7,000 for every day it fails to   
   answer a list of questions from the agency. The fines started   
   April 4 and already are above $300,000.   
      
   http://seattletimes.com/html/nationworld/2023629893_gmsagaxml.ht   
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