Feds probe GM-certified used cars that may have open recalls

General Motors is under federal investigations for selling certified used cars that still need repairs.

The agency notified GM of the probe on June 3, and it was disclosed by the company Thursday in a quarterly report to securities regulators.

As a matter of normal business, auto dealers that sell new cars for a particular auto maker will also sell so- called certified pre-owned vehicles made by that same company.

“We continue to investigate these matters and believe we are cooperating fully with all requests for information in ongoing investigations”, the filing notes. FREE registration is now required for uninterrupted access. The most notable was a recalled faulty ignition switch in older-model small cars that has been linked to 124 deaths.

General Motors is reportedly facing a Federal Trade Commission investigation into sales of recalled vehicles by used-car dealers. An FTC spokesman wouldn’t comment.

The investigation by the FTC, which regulates deceptive advertising, was listed in GM’s filing among several ongoing probes related to the recall of almost 30 million vehicles last year for various defects. Such practice is not itself illegal, however authorities appear to be taking issue with “certified” pre-owned vehicles that are leaving dealer lots without first receiving recall repairs. The government might be approaching things from that angle based on GM’s advertising claim that certified pre-owned cars are not sold with open recalls.