GM, States $120 Million Ignition Switch Settlement
- Author: Ryan Wade Oct 20, 2017,
Oct 20, 2017, 0:46
West Virginia is one of 49 USA states receiving part of a $120 million settlement with General Motors over vehicle ignition safety defects the automaker allegedly hid for years. The settlement concludes the state investigations.
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. "General Motors and other automakers should keep their customers' safety at the forefront of everything they do", Wasden said in a statement.
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"The resolution includes a financial component, and assures GM will continue ongoing improvements made to ensure the safety of its vehicles", GM said.
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 US and included in a recall is eligible for certification.
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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. The vehicle's safety airbags also might fail to deploy in a collision, increasing the risk of serious injury or death in crashes, according to the release.
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.
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West Virginia's share of the settlement is approximately $1.27 million. If there is a recall on any certified pre-owned vehicle sold in the US, the required fix must be completed before the vehicle is delivered to a consumer. The company marketed those vehicles as reliable and safe. GM may not represent that certified pre-owned vehicles that GM advertises are safe, have been repaired for safety issues or have been subject to any open recalls relating to safety or have been repaired pursuant to such a recall.