GM to Pay $900M in Ignition Switch Settlement

GM to Pay $900M in Ignition Switch Settlement

General Motors has agreed to pay $900 million to settle a U.S. government investigation into the massive ignition switch recall.

The American automaker will also sign a deferred-prosecution agreement as part of the settlement, meaning GM will be charged criminally for hiding the defect from regulators and in the process defrauding customers. The case however will be put on hold while GM fulfills terms of the deal. No individuals will be charged in the criminal case, one source told Reuters.

Official terms of the deal are expected to be announced tomorrow, but if the $900-million payout holds up, it’ll be less than the $1.2 billion Toyota had to pay in a similar case that involved unintended acceleration.

SEE ALSO: GM Ignition Switch Death Toll Hits 124

Last year, GM recalled over 30-million vehicles in North America to fix numerous issues and defects, including the ignition switch recall that is now linked to 124 deaths. The company still faces over 200 civil lawsuits over the ignition switch and other safety recalls.

[Source: Automotive News]

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