General Motors to pay Kentucky $1.3 million for defective ignition switches

GM $120 Million States settlement

General Motors will pay the State of Iowa almost $1.5 million as part of a $120 million settlement with 49 states and the District of Columbia. If a crash occurs while the ignition switch is in the "accessory" or "off" position, the vehicle's safety airbags may fail to deploy, increasing the risk of serious injury or death in certain types of crashes in which the airbag was otherwise created to deploy.

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. GM continued to market the reliability and safety of its vehicles which were equipped with this defective ignition switch. "Automakers should recognize that if they fail in this regard, states will be ready to take action".

Attorney General Alan Wilson made the announcement on Friday, October 20.

"Safety should always be the highest priority for any business", Consumer Protection Commissioner Michelle H. Seagull said in a written statement.

"I'm pleased that this matter has been brought to a resolution that involves new guarantees from GM when it comes to recalls and repairs involving its vehicles", Jepsen said. "Misrepresentations of safety standards are particularly troubling when they deal with motor vehicles because of the potential damage that can be done".

Mexico minister says can't yet see common ground to finish NAFTA talks
Trade Representative, didn't mince words in response to the criticism. "We have a lot of trade, a lot of reasons to trade". He, in turn, lambasted the two leaders as they were standing right next to him during a televised news conference.

"GM will keep it's ongoing improvements it's made to guarantee the safety of its vehicles", Caldwell stated.

The settlement also requires GM to fix vehicles before its dealers resell them as certified preowned.

The settlement, reached between GM and the attorneys general of 49 states and the District of Columbia, concludes a multistate investigation into the auto manufacturer's failure to timely disclose the defects, Maine Attorney General Janet Mills' office said Thursday in a news release. The settlement does not include what GM has paid out to individuals.

Under the settlement, GM dealers need to not sell certified pre-owned vehicles with uncompleted recalls, and is required to have a team to "improve and enhance recall awareness to vehicle owners with open recalls".

The settlement is awaiting court approval before being finalized.

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