General Motors Inks $120M Deal on Ignition-Switch Fiasco

Andrew Cummings
October 19, 2017

Laxalt said the $120 million settlement resolved the investigation into the time it took for the company to notify motorists of the issue associated with the ignition switch or key rotation-related issues in several vehicles.

GM spokesman David Caldwell confirmed on Thursday the Detroit automaker had reached a settlement with states over the more than three-year-old consumer protection investigations.

This could lead a loss of electrical systems, including power steering and power brakes. "The $1.3 million settlement announced today will provide much needed revenue to the state's General Fund to help address any budget shortfall". "When they fail to do so, as was the case with GM, we are committed to holding them accountable".

Of its share, $350,000 would go into the AG's Consumer Protection Fund, and the rest into the state's "rainy day, " or General Fund. Jepsen said his office represented CT by serving on the multistate investigation's nine-state executive committee.

The states said GM knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment, but company officials decided it was not a safety concern and delayed making recalls.

Not represent that certified pre-owned vehicles that General Motors advertises are safe, have been repaired for safety issues, or have been subject to rigorous inspection, unless such vehicles are not subject to any open recalls relating to safety or have been repaired pursuant to such a recall.

Under the settlement, filed Thursday in Baltimore City Circuit Court, GM must pay $120 million.

Under the settlement, GM is required to improve the recall process, ensure safe vehicles and protect whistleblowers and empower employees to report safety issues, Shapiro said.

From now on, GM will have to represent that a motor vehicle is "safe" and instruct its dealers that all applicable recall repairs must be completed before any auto is sold.

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