Michigan will be getting more than $4.2 million from General Motors as part of a multi-state settlement over faulty ignition switches.
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.
GM has paid compensation to the families of 124 people killed in crashes linked to the faulty switches. The company ended up recalling more than 30 million vehicles worldwide.
General Motors employees first knew of the problem in 2004, ten years before the recall was announced. Michigan, 48 other states and the District of Columbia filed claims accusing GM of concealing a safety issue and deceptive marketing for saying its vehicles were reliable. GM is paying a total of $120 million to settle the claims. Michigan's share is $4,291,165.45.
GM will also enter into a consent agreement with Michigan that includes the following terms:
- GM cannot claim a vehicle is "safe" unless it complies with all Federal Motor Vehicle Safety standards at the time
- GM cannot say a certified pre-owned vehicle is safe, repaired or inspected unless all applicable recall repairs have been done
- GM must tell all its dealers they cannot label a used car as "certified" unless all applicable recall repairs have been done
Attorney General Bill Schuette says the consent agreement will be presented to the Ingham County Circuit Court for approval.
