Already facing investigations by both houses of Congress, as well as a criminal probe by the U.S. Justice Department, General Motors revealed Thursday that it is now facing additional investigations by the attorneys general in 45 states linked to its long delay in ordering a recall of 2.6 million vehicles equipped with defective ignition switches.
Though some probes had previously been announced – GM earlier confirming it had gone before a federal grand jury in New York – the latest revelation suggests the maker’s safety woes could get substantially worse, while it could also be facing significant new fines and legal costs.
The news was revealed on the same day GM announced that it had earned a meager $200 million during the second quarter of 2014 due to expenses of more than $1 billion to cover the cost of various recall repairs and the establishment of a victims’ compensation fund linked to the ignition switch problem. A day earlier, the troubled maker had submitted documentation to federal regulators indicating the number of people killed or injured due to crashed caused by the switch problem could rise. (more…)