GM Reaches Settlement in Ignition Switch Case

GM announced it will pay $900 million fine as part of a settlement in the case of ignition switch defects.

General Motors Company announced it has signed a Deferred Prosecution Agreement with the US Attorney’s Office for the Southern District of New York.

The agreement means the government will delay prosecution of charges. GM admitted that it knew about an ignition switch defect in millions of cars, but failed to tell consumers for years.  

GM CEO Mary Barra says the agreement with the federal government is a tough one.

The comprehensive fact and the fact that we have a monitor. I will say that with all the aspects of the agreement we will cooperate fully, we will live up to the obligation we will comply with all laws and requirements and we will continue to fully cooperate with the government.

-Mary Barra, General Motor Company CEO

If the company meets all the terms of the agreement, federal prosecutors will seek dismissal of all charges. The agreement also calls for the GM to pay a $900 million fine and be placed under the oversight of an independent monitor.