General Motors will pay a $35 million fine and agree to "unprecedented oversight requirements" as part of a deal with the U.S. Department of Transportation over its recent recalls.
The deal with the National Highway Traffic Safety Administration covers GM's "failure to report a safety defect ... in a timely manner."
The fine-the maximum allowed by law-represents roughly two hours' worth of GM's revenue or about one month's profits, based on its results in the first quarter. The DOT, in a statement, called on Congress to pass legislation that would let the department levy fines up to $300 million.
The consent order between the two sides also requires GM to give the NHTSA full access to the results of GM's internal probe into the recalls.
"We have learned a great deal from this recall. Wewill now focus on the goal of becoming an industry leader in safety," GM CEO Mary Barra said in a statement. "We will emerge from this situation a stronger company."
GM shares rose 6 cents to $34.42 in morning trading. (What's the stock doing now? Click here (GM))
GM (GM)has recalled millions of cars in recent months and already taken or announced charges of about $1.5 billion. A faulty ignition switch in some older cars has been linked to 13 deaths, and GM has now expanded a safety push to other models with other defects.
The CNBC documentary "Failure to Recall: Investigating GM" debuts Sunday, May 18 at 10 p.m. ET. For more on the documentary, click here .
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