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GM, States $120 Million Ignition Switch Settlement

GM, States $120 Million Ignition Switch Settlement”

Nevada Attorney General Adam Laxalt said 49 states plus the District of Columbia settled a multistate investigation into General Motor's "failure to disclose known safety defects". The settlement concludes the state investigations.

In 2014, GM issued seven vehicle recalls affecting more than 9 million vehicles in the U.S. The recalls involved a defective ignition switch that can cause a loss of electrical systems, including power steering and power brakes. The settlement does not include what GM has paid out to individuals. "General Motors and other automakers should keep their customers' safety at the forefront of everything they do", Wasden said in a statement. Schneiderman noted that the 44-page consent decree also requires GM to ensure future safety. If a collision occurs while the ignition switch is in the "Accessory" or "Off" position, the vehicle's safety airbags may also fail to deploy, increasing the risk of serious injury or death in certain types of crashes in which the airbag was otherwise created to deploy.

"The states alleged that these actions were deceptive and that the automaker's actions violated state consumer protection laws", Herring's office said in a news release.

Mills spokesman Andy Roth-Wells said the $1.1 million will go into the office's consumer trust account and will be used for purposes such as paying litigation costs and funding programs overseen by the office. "I'm pleased that this matter has come to a close, that families will be protected from this defect, and that GM will have more appropriate guarantees regarding recalls and repairs of their vehicles".

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General Motors employees first knew of the problem in 2004, ten years before the recall was announced.

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

Maintain a Global Vehicle Safety Organization that identifies and investigates safety issues.



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