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Conn. Joins $120M Settlement with General Motors over Defective Ignition Switch

Conn. Joins $120M Settlement with General Motors over Defective Ignition Switch

General Motors Co. has reached a $120 million settlement with 49 states and the District of Columbia over its defective ignition switches.

CT served on the multistate investigation's nine-state executive committee.

GM issued seven recalls related to the issue in 2014, but state investigators charged the company knew as early as 2004 that the defective ignition switch posed a safety threat. "I'm pleased that this matter has come to a close, that families will be protected from this defect, and that GM will have more appropriate guarantees regarding recalls and repairs of their vehicles".

The faulty switches allowed the key to move into the "off" position and disable airbags.

GM agreed in September 2015 to pay $900 million to settle the Justice Department probe, which resulted in prosecutors charging the auto maker with criminal wire fraud and scheming to hide a deadly safety defect from US regulators.

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CT and its municipal co-plaintiffs alleged that certain GM employees knew as early as 2004 that the ignition switch posed a safety defect because it could cause airbag non-deployment. GM continued to market the reliability and safety of its motor vehicles which were equipped with this defective ignition switch - reads a statement from the Michigan Attorney Generals Office.

"This settlement should send a strong signal to automobile manufacturers and businesses of all kinds that my office will not tolerate slow responses to safety hazards in consumer products, especially when a delay presents an unacceptable risk to the public", said Attorney General Herring.

Maintain a Global Vehicle Safety Organization that identifies and investigates safety issues.

From now on, GM will have to represent that a motor vehicle is "safe" and instruct its dealers that all applicable recall repairs must be completed before any auto is sold. GM also must instruct dealers that all applicable recall repairs must be completed before any GM vehicle is sold or returned to a customer.

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