Last month, Toyota reached a $1.2 billion settlement with the United States Justice Department to resolve allegations that the automaker had covered up defects in its cars. Of course, this was after earlier paying $66 million for failing to timely report problems with unintended acceleration in its vehicles.
This month, General Motors is under fire for concealing defects in the ignition switches of more than 1.37 million vehicles which has been linked to 13 deaths. And, the U.S. Department has also filed a criminal action again G.M. alleging it concealed brake problems in its vehicles. Last year, Ford was fined $17.4 million dollars (the maximum fine at the time) for delaying a recall of the Ford Escape when the automaker knew the gas pedals could become stuck.
There appears to be an alarming trend of automakers covering up defects and delaying recalls. By law, automakers must report safety defects to the National Highway Traffic Safety Administration (NHTSA) within 5 days of becoming aware of an issue. In addition, the National Highway Traffic Safety Administration can open its own investigation if it notices a trend in consumer complaints or accident information.