- The parallels are striking in the handling of vehicle defects by Toyota (TM) and GM, and TM’s $1.2B settlement establishes a template for GM to potentially resolve its own issues.
- U.S. Attorney General Eric Holder made it clear in a statement that “other car companies should not repeat Toyota’s mistake; a recall may damage a company’s reputation, but deceiving your customers makes that damage far more lasting.”
- The use of the wire fraud statute in nailing Toyota means any GM statements regarding ignition switch problems that were less than truthful can be the basis for a criminal charge.
- GM is still in the early stages of its internal investigation, which will take months to complete, but it now knows what it is likely to face: a hefty financial penalty and an outside monitor in exchange for avoiding a criminal conviction.
at CNBC.com (Nov 18, 2014)