General Motors has announced that it has resolved a U.S. Securities and Exchange Commission (SEC) investigation stemming from the company’s 2014 ignition switch recalls by consenting to an administrative SEC Cease and Desist Order and without admitting or denying any wrongdoing.
The SEC settlement does not call into question any of GM’s current or prior financial statements or its disclosures. In addition, the SEC has not found any material weakness or significant deficiency.
As GM notes in its announcement, it has been proactive and successful in resolving ignition switch issues with customers and regulators at both the state and federal level. As part of the settlement, the company will pay a civil penalty of $1 million.
GM was proactive in the months immediately following the ignition switch recall by reorganizing its vehicle engineering teams for greater transparency, urgency and accountability. This reorganization included creating a new global vehicle safety organization that is focused on executing zero-defect safety systems for vehicles and customers.
The safety organization includes an industry-leading emerging issues and data analysis team and a re-engineered field investigation process. The company also created a “Speak Up For Safety” program that provides all employees and suppliers an opportunity to report or suggest any potential safety related items.