Canada’s transportation department is investigating two crashes involving General Motors vehicles vehicles included in the recent ignition-switch recall.
Canada’s transportation department is investigating two crashes involving General Motors vehicles vehicles included in the recent ignition-switch recall.
Transport Minister Lisa Raitt’s press secretary confirmed Tuesday that the Canadian government is looking into two separate instances where GM air bags did not deploy in cars recalled by the auto bailout recipient. The investigation began after Transport Canada reportedly received complaints of fatal accidents in June 2013 and April of this year.
As for the first case, Canadian officials have decided the key moved out of the “run” position after the vehicle left the road. “Therefore, there may be various contributing causes for the collision and fatality,” a statement said.
However, Transport Canada said they are continuing to investigate how the key’s position may have influenced air-bag operation in that accident. But on the second complaint, they are in the middle of an investigation to discover why air bags did not deploy, at all.
While it is true that Transport Canada has not found any evidence that GM Canada failed to comply with the country’s Motor Vehicle Safety Act, the recent news is the latest in a train of bad press for the American motor giant. It was learned that the faulty ignition switches were known by some in GM much earlier than previously thought. According to a timeline provided by the company, themselves, some GM engineers were aware of a possible defect as early as 2001.
The agency also would not rule out the possibility of taking enforcement actions if GM Canada is found to be in violation of the law.
A GM spokesman responded by noting that the two crashes in Canada were already included in GM’s accident totals for the ignition-switch recall. The company has admitted that the recall, which was first brought up in February, was tied to 13 deaths and includes roughly 2.6 million vehicles worldwide.
In the U.S., alone, the recall involves nearly 2.2 million cars, including the 2005 to 2010 Chevrolet Cobalt and Pontiac G5 compact cars.
GM agreed to pay a maximum $35 million fine to the National Highway Traffic Safety Administration earlier this month, and the company also admitted it failed to provide a recall plan for the affected vehicles within five business days of learning about the safety issue. The time period is required by law.
GM has said an internal investigation led by former U.S. Attorney Anton Valukas may be completed by June.
Still, GM just announced four new recalls last week, and announced plans to take a $400 million charge in the second quarter to cover costs associated with repairs. Initially, GM expected to take a $200 million hit.
Shares rose 17 cents, or 0.5%, to $33.80 in recent trading. GM is down about 17.3% so far this year.
