General Motors Co. on Thursday agreed to pay $120 million to resolve claims from 49 USA states and the District of Columbia over faulty ignition switches, state attorneys general said. The settlement concludes the state investigations. This is separate from the settlement to victims who were injured or to the families of those killed in GM cars with faulty switches.
Michigan, 48 other states and the District of Columbia filed claims accusing GM of concealing a safety issue and deceptive marketing for saying its vehicles were reliable.
Not represent that certified pre-owned vehicles that General Motors advertises are safe, have been repaired for safety issues, or have been subject to rigorous inspection, unless such vehicles are not subject to any open recalls relating to safety or have been repaired pursuant to such a recall.
The faulty ignition switches could move from the run position to the accessory or off position in certain conditions.
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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In all, the settlement covers seven GM recalls in 2014 affecting more than nine million vehicles, multiple state attorneys general said.
Caldwell said the settlement assures "GM will continue ongoing improvements it's made to ensure the safety of its vehicles".
Hawley said the automaker's actions violated state consumer protection laws, including Missouri's Merchandising Practices Act.
According to state investigators, GM allegedly knew certain vehicles had a safety defect with the ignition switch as of 2004 but delayed issuing a recall until 2014. In addition, GM will not be allowed to market vehicles as "safe" unless it has complied with the Federal Motor Vehicle Safety standards as it is applicable to the vehicle. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.
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