teknolojiarsivi.com June 19, 2018

GM Reaches $120m Settlement With States Over Switches

20 October 2017, 12:45 | Floyd Cook

Attorney General Adam Laxalt is shown in an undated image

Attorney General Adam Laxalt is shown in an undated image

"Automakers, like any manufacturer, have a responsibility under state law to be truthful in the representations they make about their products", said Attorney General Jepsen.

General Motors Co. will pay out $120 million in a multi-state settlement over its defective ignition switches.

Under terms of the settlement, which included 49 states and the District of Columbia, GM agreed that all recall repairs must be completed before its certified pre-owned vehicles can be advertised as safe. GM is paying a total of $120 million to settle the claims. "Automakers should recognize that if they fail in this regard, states will be ready to take action". "The $1.3 million settlement announced today will provide much needed revenue to the state's General Fund to help address any budget shortfall". The recalls involved a defective ignition switch that, under certain circumstance, could move out of the "run" position into the "accessory" or "off" position, causing electrical systems, including power steering and power brakes, to become inoperable.

The switches played a role in at least 124 deaths and 275 injuries, according to a victims' fund set up by GM. However, GM personnel decided it was not a safety concern and delayed recalls, continuing to market the reliability and safety of motor vehicles equipped with the defective ignition switch.

Of cases that have gone to trial, individual drivers have had little luck holding GM liable for their collisions. The defect, which caused ignition switches in several GM models to abruptly.

"Instead of prioritizing customers, General Motors turned a blind eye for years and chose to hide the safety defects associated with several models of their vehicles", New York Attorney General Eric Schneiderman said. 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.

Virginia will receive $2,396,147.70 in the settlement.

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