Things are going from bad to worse for General Motors amid the fallout related to the long-delayed recall of 1.6 million vehicles worldwide over a faulty ignition switch installed between 2003 and 2007, as both the U.S. Justice Department and a House panel plan to conduct separate investigations into the matter.
Automotive News and Bloomberg report the Justice Department’s investigation will focus on whether or not GM violated criminal or civil laws in failing to alert regulatory bodies sooner than they had about the switch, with lawyers in the U.S. Attorney’s Southern District of New York office leading the charge.
Meanwhile, the House Energy and Commerce Committee will determine if either the automaker or the National Highway Traffic Safety Administration — who is also conducting an investigation into the recall via a 107-question survey due April 3 — missed anything “that could have flagged [the] problems sooner,” according to Representative Fred Upton, who also added:
If the answer is yes, we must learn how and why this happened, and then determine whether this system of reporting and analyzing complaints that Congress created to save lives is being implemented and working as the law intended.
On top of the aforementioned inquiries, GM itself has hired Jenner & Block LLP chairman Anton Valukas to head an internal investigation into the handling of the recall. Valukas was the appointed examiner for the Justice Department in the inquiry of Lehman Brothers over the financial institution’s downfall in the run-up to the Great Recession in late 2008.