Nevada Attorney General announces General Motors settlement


CT will share in a tentative $120 million settlement with General Motors over allegations the auto giant hid safety issues tied to faulty ignition switches in certain vehicle models, authorities say. 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 settlement does not include what GM has paid out to individuals.

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.

GM said in addition to the state payouts, it pledged to continue to improve its vehicle safety efforts.

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.

Maintain a Vehicle Safety Owner Engagement Team to improve and enhance recall awareness to auto owners with open recalls - GM has to provide a report within 60 days after the one-year anniversary of this agreement summarizing their efforts.

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If a collision occurs while the ignition switch is in "accessory" or "off", the vehicle's safety airbags may also fail to deploy, increasing the risk of serious injury or death that the airbag was created to prevent.

Attorney General Bill Schuette says the consent agreement will be presented to the Ingham County Circuit Court for approval.

The states alleged, according to the release, that certain GM employees knew of the defect as early as 2004 but its personnel decided it was not a safety concern. The settlement concludes a lengthy investigation of GM's failure to disclose known safety defects in various vehicle models.

Maintain a Global Vehicle Safety Organization that identifies and investigates safety issues. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.

Not represent that a motor vehicle is "safe" unless they have complied with the Federal Motor Vehicle Safety standards applicable to the motor vehicle at issue. 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.