The Brazilian government's Secretaria de Direito Econômico (SDE) has fined General Motors do Brasil 3.19 million reais (about $US1.323 million) for delaying a Corsa recall last year.

Strategic Review-

General Motors


Last October GM recalled just over one million Chevrolet Corsas, built in Brazil between 1994 and 1999, to change faulty front seatbelts.

But an SDE investigation opened the same month concluded that the car maker knew about the problem in 1999 yet delayed the recall.

The SDE said that two people died in an April 1999 Corsa pick-up accident because of the seatbelt defect but GM did not tell SDE about the crash though it paid compensation to the victims' families.

GM is to appeal the decision.

"We delayed announcing the recall because we needed to test all the seatbelt parts to learn what happens," said General Motors do Brasil vice-president José Carlos Pinheiro Neto.


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