Report: Hummer Recall Only Happened After NHTSA Threatened GM

Jalopnik has an interesting story today about how General Motors negotiated its way into recalling 200,000 Hummers only after the National Highway Traffic Safety Administration threatened to launch a formal investigation.
Last week, Hummer recalled nearly 200,000 SUVs due to an increased fire risk because of a faulty HVAC harness that could melt and catch fire.
GM knew about the problem in 2008, Jalopnik writes, and did nothing until issuing a recall this July.
The story details a growing schism between NHTSA and automakers, who’ve been accused of having a cozy relationship before.
Officials at GM presented NHTSA officials with their accounting of the increased fire risk in Hummer H3 and H3T models in January. When federal officials audited the numbers later, they discovered a larger number of incidents than what GM may have reported.
According to Jalopnik, federal safety officials gave GM an ultimatum in June: recall or risk a federal investigation. GM issued a recall notice on July 9.

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Recall all of them.
How do you threaten something that no longer exists?
An astute observer might point this out as a reason why govn't oversight/regulation is necessary. Good thing I'm not astute. (Bonus points if you recognize which urban fantasy book series I plagiariz--*ahem*--adapted this quote from.)
You know what, there needs to be some new legislation here, a formula perhaps. If X Automaker goes Y years with knowledge of a needed recall, and does not inform the NHTSA that Z vehicles should be recalled, then X pays a large, LARGE fine which is (X) x (multiplier) x (Y) x (number of Z recalled). The fine needs to be punitive, so they quit doing this sh!t. It's not acceptable.