General Motors agreed to pay $900 million and admit to misleading the government and the public about the safety of its vehicles to end a US criminal investigation into its handling of defective ignition switches linked to 124 deaths.
The settlement and charges, detailed in papers filed yesterday in Manhattan federal court, have transformed the relationship between the automaker and the US government, which bailed out GM during the financial crisis. GM admitted to failing to disclose to its US regulator and the public a potentially lethal safety defect with the switches that kept airbags from deploying in some vehicles. It also admitted to misleading consumers about the safety of vehicles affected by the defect.
Under a three-year deferred prosecution deal GM must hire an independent monitor for safety practices. – (Reuters)