Nevada Attorney General announces General Motors settlement

GM $120 Million States settlement
GM $120 Million States settlement
Author

20 October, 2017

General Motors has agreed to pay $120 million to settle claims by 49 states and Washington, D.C., over faulty ignition switches. The settlement concludes the state investigations. That year, GM issued seven vehicle recalls in response to unintended key-rotation and ignition-switch issues, which have affected more than 9 million vehicles nationwide.

The investigation was launched in 2014 following National Highway Transportation Safety Administration recalls into the defective ignition switches.

GM will pay fees to 49 states and the District of Columbia and will ensure all repairs are done, according to Attorney General Andy Beshear.

"Instead of prioritizing customers, General Motors turned a blind eye for years and chose to hide the safety defects associated with several models of their vehicles", New York Attorney General Eric Schneiderman said.

In 2014, GM issued seven vehicle recalls in response to unintended key-rotation-related and/or ignition-switch-related issues, which have affected over 600,000 vehicles in MI.

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The recalls involved a defective ignition switch that, under certain circumstances, could move out of the "run" position into the "accessory" or "off" position, causing electrical systems, including power steering and power brakes, to become inoperable. The issues could also result in the safety airbags failing to deploy, increasing the risk of serious injury or death.

Every state but Arizona sued the Detroit-based automaker, saying it violated consumer protection laws by selling cars even though it knew for at least a decade that the switches were defective. The defect, which caused ignition switches in several GM models to abruptly.

The state attorneys general had alleged GM personnel were aware of the problem as early as 2004, but they decided it wasn't a safety concern and delayed making recalls.

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.

Maintain a Global Vehicle Safety Organization that identifies and investigates safety issues. In addition, GM will not be allowed to market vehicles as "safe" unless it has complied with the Federal Motor Vehicle Safety standards as it is applicable to the vehicle.


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