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GM agrees to $900M settlement in faulty ignition switch fiasco

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Josée Paquet

There are new developments in the case of General Motors and its faulty ignition switches. The automaker has agreed to a settlement of $900 million USD and a deal to end civil lawsuits, sources told Reuters

So far, 124 people have died as a direct result, and GM has recalled millions of vehicles to fix the problem, which could cause the engine to shut down unexpectedly. The company previously admitted to being aware of these issues since 2003 with older models like the Chevrolet Cobalt and Saturn ION.

Each victim’s family will receive at least $1 million USD. Compensation will also be allocated to the 184 people who suffered injuries from the faulty ignition switches.

Despite the $900 million settlement, GM still faces criminal lawsuits for hiding the problem from authorities. These lawsuits, however, will be put on halt while the parties finalize the latest deal. 

 

Josée Paquet
Josée Paquet
Automotive expert