GM owes CT, others $120M in ignition flap

Pauline Gross
October 20, 2017

Virginia will receive almost $2.4 million in a settlement with General Motors Co. over defective ignition switches. The settlement concludes the state investigations.

In 2014, GM issued seven vehicle recalls in response to unintended key-rotation and ignition-switch issues, which have affected more than 9 million vehicles across the country.

Since disclosing the defect, GM has paid a $900 million fine to end a criminal investigation by the U.S. Department of Justice and settled a class action brought by investors for $300 million.

Attorney General Josh Hawley announced on Thursday a $120 million multi-state settlement with General Motors Company.

GM said in addition to the state payouts, it pledged to continue to improve its vehicle safety efforts. Schneiderman noted that the 44-page consent decree also requires GM to ensure future safety. "Automakers should recognize that if they fail in this regard, states will be ready to take action".

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The largest USA automaker had previously paid about $2.5 billion in penalties and settlements over faulty ignition switches that could cause engines to stall and prevent airbags from deploying in crashes.

In addition to the monetary payment, GM agreed to instruct its dealers that all applicable safety repairs be completed before any GM motor vehicle sold in the USA and included in a recall is eligible for certification. The issues could also result in the safety airbags failing to deploy, increasing the risk of serious injury or death.

CT and its municipal co-plaintiffs alleged that certain GM employees knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment. The defect, which caused ignition switches in several GM models to abruptly.

Laxalt said Nevada will receive about $1.4 million from the settlement.

The settlement prohibits GM from claiming a motor vehicle is safe unless it complies with the applicable Federal Motor Vehicle Safety standards.

Other reports by GizPress

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