GM Ignition Defect Scandal Reaches Penultimate Chapter

Earlier this month, General Motors agreed to a $120 million settlement over faulty ignition switches and the uncouth way in which it handled that particular, ahem, “safety issue.” The settlement applied to 49 states and the District of Columbia but not Orange County, California. That region of the U.S. required a separate case, an additional $13.9 million, and some exuberant scorning.

California faulted GM with not only selling defective vehicles but intentionally concealing serious safety defects through the careful usage of language.

Prosecutors claimed the company specifically trained its staff to never use words like “defect” or “stall,” and even avoid dealing with any safety issues whenever possible, while being simultaneously aware of a problem that ultimately resulted in the deaths of over 120 individuals. While this matter had been more-or-less settled via an earlier $900 million agreement (resulting from the Justice Department’s investigation, in 2015), it deferred direct criminal prosecution of the company for three years. Perhaps that caveat rubbed Californian prosecutors the wrong way and they wanted some additional retribution.

Whatever the reason, an Orange County Superior Court judge approved the settlement for alleged violations of unfair competition and false advertising laws for some recalled vehicles on Friday evening. According to the Detroit Free Press, the automaker released a statement later that night confirming the matter was settled: “GM has reached a constructive settlement with Orange County, Calif. to resolve claims filed by the Orange County district attorney regarding the company’s advertising of vehicles that were subject to certain recalls in 2014, including the ignition-switch recall.”

The California settlement amounts to $13.9 million, but GM previously paid around $2.5 billion in penalties and settlements over the faulty ignition switches, which caused engines to stall and prevented airbags from deploying during collisions. The automaker has repeatedly assured the public that is has learned from its past mistakes and taken measures to improve the safety of its vehicles. A large part of that has been GM’s Speak Up for Safety program — established in 2014.

However, that’s aimed toward a brighter future, whereas this court case was targeted at an uglier past. Orange County District Attorney Tony Rackauckas said it was his belief that GM absolutely failed to disclose important defects in power steering, airbag and braking systems.

“We must protect our consumers from businesses that put profits over people by keeping cars on roads safe and avoiding preventable accidents,” Rackauckas said in a statement. “We must also encourage all businesses to be fair and live up to safety standards, and must not allow those engaging in unfair practices to punish those businesses that don’t cut corners by compromising safety.”

While GM still faces countless civil suits in connection to the ignition switch recall, the California angle was among the last governmental cases against the company that had gone unsettled. Only State of Arizona vs General Motors is left to wrap up. Ironically, Arizona was the first state to pursue legal action against the manufacturer.

[Image: GM]