MI will be getting more than $4.2 million from General Motors as part of a multi-state settlement over faulty ignition switches. "This settlement will help us investigate and prosecute similar cases of corporate misconduct in order to protect Pennsylvanians". The Detroit News said GM will pay out a total of $120 million.
GM agrees to pay $120M to settle state claims...
The state of MI will receive just under $4.3 million in the settlement which, according to the state's attorney general will go into the state's general fund.
GM said in addition to the state payouts, it pledged to continue to improve its vehicle safety efforts.
The faulty switches allowed the key to move into the "off" position and disable airbags.
Laxalt said Nevada will receive about $1.4 million from the settlement.
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Schuette's office said the ignition switch issues affected more than 600,000 vehicles in MI.
"As the people's lawyer, my office is working to protect Kentucky families and hold accountable companies that violate Kentucky's consumer protection laws", Beshear said.
The state alleged that certain General Motors Corporation employees knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment.
GM issued recalls on seven vehicles in 2014 in response to the issue.
"Among its other functions, the Global Product Integrity organization will establish processes to identify and resolve potential safety issues in the design of GM Motor Vehicles and using Design for Failure Mode and Effect Analysis (or its functional equivalent) and/or strategies selected by GM to achieve the same or similar results", the consent order states. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.
Assistant Attorneys General Brendan Flynn and Lorrie Adeyemi, head of the Consumer Protection Department, assisted the Attorney General with this matter.