General Motors has accepted to pay $120 million to deal with claims from 49 U.S. states and the District of Columbia over defective ignition switches, state attorneys general and the company stated on Thursday.
The largest U.S. automaker had formerly paid about $2.5 billion in charges and settlements over defective ignition switches that could trigger engines to stall and avoid airbags from deploying in crashes. The flaw has been connected to 124 deaths and 275 injuries, and prompted a recall that started in February 2014 of 2.6 million vehicles.
GM spokesperson David Caldwell stated the automaker had reached a settlement with states concerning the more than 3-year-old consumer protection investigations.
“GM will keep it’s ongoing improvements it’s made to guarantee the safety of its vehicles,” Caldwell stated. These include maintaining a new organizational structure committed to international vehicle safety and a program that motivates employees to speak out about possible safety concerns.
New York Attorney General Of The United States Eric Schneiderman stated the automaker had “turned a blind eye for several years and opted to conceal the safety defects connected with numerous models of their vehicles.”
Under the settlement, GM dealers need to not sell certified pre-owned vehicles with uncompleted recalls, and is required to have a team to “improve and enhance recall awareness to vehicle owners with open recalls.”
Some states informed they would use settlement funds to investigate and prosecute future misleading practices.
