Last week, the Department of Transportation (DOT) fined General Motors (GM) a record $35 million for GM’s handling of an ignition switch defect affecting more than 2.5 million of its vehicles.  This amount is the largest-ever fine against an automaker imposed by the DOT.  It is also the maximum fine allowed by law.  The DOT’s action is separate from any action that would be taken by the Department of Justice (DOJ).  The DOJ’s investigation is still ongoing.  The DOT fine is also separate from the various civil lawsuits that have been filed against GM nationwide.

One of the most shocking – and bizarre – revelations from the DOT investigation is that GM circulated a memo to its employees during the cover-up of the ignition switch issue that prohibited its employees from using certain words to describe the defect.  Among the banned words are: “safety,” “chaotic,” “problem,” “bad,” “terrifying,” “dangerous,” “horrific,” “evil,” “deathtrap,” “widow-maker,” “Hindenburg,” “always,” and “never.” There were a total of 68 banned words on the list.

The revelation that GM censored its employees is yet another piece of strong evidence that auto maker purposefully covered up the ignition switch defect to avoid a recall.  More such revelations are sure to follow as the class action lawsuits and DOJ investigations move forward.  After all, it’s not possible to hide something this big for 13 years without having to take many steps to accomplish the cover up along the way.  GM should simply admit liability, settle the matters and move forward.  

— Kassem Dakhlallah is a senior partner with At Law Group, PLLC.  His practice focuses on complex litigation, including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at (313) 406-7606 and kd@atlawgroup.com.