General Motors (GM) agreed to pay 900 million dollars regarding its failure to remedy an ignition switch defect blamed for more than 120 fatalities.
The safety defect could cut off engine power and disable air bags, endangering front seat passengers, in a collision.
GM concealed that defect from the National Highway Safety Administration (NHTSA). GM admitted to having defrauded customers by marketing its vehicles as safe during that period. There are still pending lawsuits for injured victims and families of others who were killed.
GM had also extended settlement offers to over 1300 additional victims of the defect. GM is also responsible for the costs of fixing 2.6 million recalled vehicles, involving 2003 – 2007 models, including the Chevrolet Cobalt and Saturn Ion.
GM stated that lives were taken and families were devastated, there is no way to change that, the agreement and financial compensation allows for some healing.
NO GM employees were charged as part of the U.S. Justice Department criminal investigation.