news

General Motors pays $5.75 million settlement in California, following ignition switch scandal

General Motors has agreed to pay US$5.75 million (AU$7.5 million) to the US state of California, following new allegations it was deceptive in the wake of its deadly ignition switch scandal.


The widespread fault – in which certain models were subject to complete engine shut down because the ignition could not handle the weight of keys, thus preventing the deployment of airbags in an accident – led to at least 124 deaths and 275 injuries.

The Detroit-based automotive conglomerate was reportedly aware of the fault and its dangers by 2004, however it took 10 years for the first vehicles to be recalled.

According to Californian prosecutors, the US car maker downplayed and concealed information about the potentially life-threatening faults from investors, including the state's largest pension system for public employees.

As of 2021, General Motors has paid close to US$3 billion (AU$3.9 billion) in total fines and penalties relating to the fault. It has recalled 30 million cars worldwide.

Drive
William Davis

William Davis has written for Drive since July 2020, covering news and current affairs in the automotive industry. He has maintained a primary focus on industry trends, autonomous technology, electric vehicle regulations, and local environmental policy. As the newest addition to the Drive team, William was brought onboard for his attention to detail, writing skills, and strong work ethic. Despite writing for a diverse range of outlets – including the Australian Financial Review, Robb Report, and Property Observer – since completing his media degree at Macquarie University, William has always had a passion for cars.

Read more about William DavisLinkIcon
Chat with us!







Chat with Agent