State to Get $4M+ in GM Switch Settlement

State to Get $4M+ in GM Switch Settlement

General Motors is going to fork over $120 million - with about $10 million going to area states - as part of a settlement over the cover-up of safety issues related to faulty ignition switches that resulted in dozens of deaths including a 21-year-old Pennsylvania woman, state attorneys general Josh Shapiro and Christopher Porrino announced Thursday.

The switches could slip from "Run" to "Accessory" of "Off" while the vehicle was in motion, leaving drivers with no power steering, no power brakes and possibly no airbags in case of a crash.

Others participating are Alabama, Alaska, Arkansas, California, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, Wisconsin and Wyoming.

West Virginia's share of the settlement is approximately $1.27 million. Schneiderman noted that the 44-page consent decree also requires GM to ensure future safety. "These improvements include continuation of a new organizational structure devoted to global vehicle safety and the company's Speak Up for Safety program".

More news: NOAA's winter forecast is in, and it looks frozen for us

Instruct its dealers that all applicable recall repairs must be completed before any GM motor vehicle sold in the US and included in a recall is eligible for certification and, if there is a recall on any certified pre-owned vehicle sold in the USA, the required fix must be completed before the vehicle is delivered to a customer.

"GM's defective ignition switches put its customers' lives at risk", Frosh said in an announcement.

States say employees knew about the issue but didn't think it was a safety concern. The company marketed those vehicles as reliable and safe.

Two Texas lawsuits filed against GM in state court also ended in the auto giant's favor.

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