Recalls and corruption probes reshaped the auto industry heading into 2020s

  • 📰 CNBC
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 72%

Business News News

Business Business Latest News,Business Business Headlines

The global auto industry was under a regulatory microscope many times in the 2010s for incidents its critics say failed customers as well as shareholders.

"Recalls are certainly an issue that continues to touch everyone who owns a motor vehicle, and nothing drove that point home more clearly than the Takata recall, which went across 19 different manufacturers," Levine said.Joe Raedle | Getty Images

The Japanese automaker was fined billions for issuing misleading and deceptive statements to its customers and federal regulators, including a deferred prosecution agreement with a $1.2 billion criminal penalty in 2014 and another $1.2 billion settlement of a class-action lawsuit in 2012. Most notably, a September 2018 settlement agreement with the SEC removed Musk from his chairman role of the company. Tesla and Musk also agreed to each pay $20 million in fines.

Months later, Musk's deal with the SEC appeared to be in jeopardy when the agency asked a judge last February to hold Musk in contempt for violating its settlement deal. The SEC cited an "inaccurate" Feb. 19 tweet about vehicle production. On that date, Musk tweeted — then revised — projections for full-year Tesla manufacturing numbers of "around" 50,000 units.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in BUSİNESS

Business Business Latest News, Business Business Headlines