January 2005 - The State Department recently imposed a $20 Million penalty against General Motors and General Dynamics for 248 violations of the International Traffic in Arms (ITAR). Specifically, General Motors was penalized for releasing defense-related technical data to foreign nationals working in their overseas facilities in countries such as Australia, Canada and Switzerland. General Motors was hit with a $10 Million civil fine as well as being required to pay $5 Million in order to correct its internal export compliance program.
Having acquired parts of GM's defense business several years back, General Dynamics was hit with successor liability and required by the State Department to also spend $5 Million to correct its internal export compliance program.
Please see our topic on Title 22 Forein Relation, Chapter 1 Department of State, Subchapter M ITAR, Part 125 LICENSES FOR THE EXPORT OF TECHNICAL DATA AND CLASSIFIED DEFENSE ARTICLES under our Policy and Guidance "Law" section.