GM Reaches $120m Settlement With States Over Switches

Oct 20, 2017, 00:47
GM Reaches $120m Settlement With States Over Switches

The settlement comes after allegations were made that GM concealed safety issues regarding ignition-switch-related defects in GM vehicles.

CT served on the multistate investigation's nine-state executive committee.

Of cases that have gone to trial, individual drivers have had little luck holding GM liable for their collisions.

Connecticut's share of the $120 million settlement is $3,206,587.58, of which $350,000 will be deposited in the Attorney General's Consumer Protection Fund and the remainder will go to the state's General Fund.

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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.

The defect in the GM ignition switches caused vehicles to move out of the run position to the accessory or off position, according to Beshear's office.In a crash, the vehicle's safety airbags may fail to deploy because of a loss of electrical systems.

It led to 124 deaths and recalled more than 2.6 million cars.

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.

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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. However, despite this knowledge, GM delayed making recalls and continued to market the reliability and safety of motor vehicles that were equipped with the defective ignition switch.

States say employees knew about the issue but didn't think it was a safety concern. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.

"Among its other functions, the Global Product Integrity organization will establish processes to identify and resolve potential safety issues in the design of GM Motor Vehicles and using Design for Failure Mode and Effect Analysis (or its functional equivalent) and/or strategies selected by GM to achieve the same or similar results", the consent order states.

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