General Motors Company (NYSE:GM) Faces Charges From The State of Arizona


General Motors Company (NYSE:GM) has gotten itself into a bit of trouble regarding delayed recalls and that too with the powerful state government of Arizona. The case is regarding a defection in the ignition switch. The whole matter has now been turned into a safety issue where Arizona government is accusing General Motors (NYSE:GM) of concealing safety problems with the cars it sold.

The suit against General Motors (NYSE:GM) is of 10,000 dollars per violation over hundreds of vehicles sold. Atop that, there are other mounting accusations regarding public safety and fraud. This means General Motors (NYSE:GM) might be looking at billions of dollars. General Motors (NYSE:GM) is adamant that it’s a conspiracy against the company and the facts are being misrepresented.

General Motors (NYSE:GM) has been hit with a plethora of suits since the company opened up global recall. Numerous issues started to come up in these recalls, most of them of safety, which has marred the reputation of General Motors (NYSE:GM). The Arizona case is being considered more serious than the most since it’s backed up by the state government. Also considering the fact that it has been turned into multiple issues such as public safety and fraud, it is bound to give General Motors (NYSE:GM) a hard time.

Documents presented to U.S Congress insinuate that General Motors (NYSE:GM) might have been aware of this issue. Yet it didn’t act. If this is proved against General Motors (NYSE:GM), not only the reputation of the auto company but the finances of the company will take a hard toll. The recall is now encompassing 60 defects in 27 million vehicles. That’s a large number. It’s really a shame to see such a case build against General Motors Company (NYSE:GM) which has a nice reputation in the market.

General Motors Company (NYSE:GM) is currently being investigated by 48 states. This could lead to a ban if things got worse because the state government has all the rights to do so if approved by the U.S Congress. The production of vehicles can be suspended, costing General Motors Company (NYSE:GM) billions in the process. These cases have squeezed General Motors Company (NYSE:GM) into a corner.

General Motors (NYSE:GM) is ready to compensate the victims of the faulty ignition switch; there are programs dedicated to reimburse such people but the state of Arizona still has many things against General Motors Company (NYSE:GM); the most dangerous of those accusations is concealing information and pressing fraud. Also, the state of Arizona claims that lives could have been lost because of General Motors Company (NYSE:GM) inability to inform them about the fault. The government of Arizona claims General Motors Company (NYSE:GM) didn’t inform them deliberately.

Shares of General Motors Company (NYSE:GM) also fell down by 0.5 percent, probably because of the mess it has gotten into. Since December, General Motors Company (NYSE:GM) have fallen by 24 percent. General Motors Company (NYSE:GM) will also have to deal with angry consumers that lost money because of the numerous defects.