The Car and Truck Fleet and Leasing Management Magazine

GM Reaches Ignition-Switch Settlement With 49 States

October 19, 2017

Michigan Attorney General Bill Schuette
Michigan Attorney General Bill Schuette

General Motors has reached a settlement with 49 state attorneys general and the District of Columbia, with the automaker agreeing to pay $120 million to resolve claims arising from faulty ignition switches.

The settlement concludes a multi-state investigation into the timeliness of GM’s response once the company identified evidence of the defect. Ultimately, GM recalled millions of vehicles for the problem in 2014.

Michigan Attorney General Bill Schuette announced the settlement on Oct. 19.

“There is no denying having cars on the road with faulty ignition switches was dangerous,” Schuette said. “Today’s settlement shows General Motors is taking responsibility and committed to moving forward and creating quality cars Michigan residents can trust.”

GM has previously paid approximately $2.5 billion in penalties and settlements associated with the defective ignition switches. These switches — which caused such problems as air bag, power steering and power brake malfunction — have been linked to 124 fatalities and 275 injuries.

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