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Policy Issues in the General Motors Vehicle Recall (CRS Report for Congress)

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Release Date March 31, 2014
Report Number R43454
Report Type Report
Authors Bill Canis, Specialist in Industrial Organization and Business; David Randall Peterman, Analyst in Transportation Policy; Carol A. Pettit, Legislative Attorney
Source Agency Congressional Research Service
Summary:

“General Motors Co. (GM) has notified the National Highway Traffic Safety Administration (NHTSA) that it is recalling 2.2 million vehicles because of a faulty ignition switch, which can affect the operation of the airbag system. The defect that GM identified was a ‘condition in which the ignition switch may unintentionally move from the ‘run’ position to the ‘accessory’ or ‘off’ position resulting in a loss of power.... In some cases, the timing of the ignition switch movement relative to the activation of the sensing algorithm of the crash event may result in the airbags not deploying.’ […] GM has said it was aware of a problem with certain ignition switches as far back as 2001. This has raised a question regarding the timeliness of GM’s 2014 recall notice, as well as the impact of the 2009 bankruptcy of General Motors Corporation, a predecessor company, on liability for injuries and deaths that may be related to this defect.”