GM to pay $900 million in settlement
According to Automotive News, General Motors has agreed to pay $900 million after admitting it hid a lethal defect in its vehicle ignition switches, which is the cause of 124 deaths.
In a U.S. Federal court in Manhattan, General Motors has admitted they failed to disclose to the National Highway Traffic Safety Administration and the public of a safety defect with the ignition caused some GM vehicles to stall, preventing airbags from deploying during crashes. The defect also prevented power steering and power brakes from operating in some vehicles. GM has also admitted to misleading consumers about the safety of vehicles that may have been affected by the lethal defect.
“The mistakes that led to the ignition switch recall should never have happened. We have apologized and we do so again today. We have faced our issues with a clear determination to do the right thing both for the short term and the long term. I believe that our response has been unprecedented in terms of candor, cooperation, transparency and compassion,” said GM CEO Mary Barra in a recent statement.
Automotive News also reported that GM entered into a three-year deferred-prosecution agreement and as a result must now hire an independent monitor to oversee its safety practices. As long as GM adheres to the agreement all criminals charges will be dropped.