General Motors has agreed to pay a $900m fine to avoid a criminal investigation into allegations that it deliberately hid information about a fault that led to the deaths of at least 124 people. As part of the settlement with the Department of Justice on Thursday, GM admitted that it failed to disclose to its US regulator and the public a potentially lethal safety defect" and "further affirmatively misled consumers about the safety of GM cars afflicted by the defect". The company paid the fine in order to avoid being criminally charged with scheming to conceal the fact that a fault with its ignition switch could lead to engines suddenly turning off and brakes being disabled. America's largest car maker eventually recalled 2.6m cars to replace the faulty ignition switch. An investigation found that GM engineers and lawyers knew about the defect for more than a decade before the company admitted to any problem and began the recall. GM fired 15 employees following the 2014 internal investigation. Clarence Ditlow, executive director of the Center for Automotive Safety, a nonprofit advocacy group, said: "GM killed over a 100 people by knowingly putting a defective ignition switch into over 1 million vehicles. Today thanks to its lobbyists, GM officials walk off scot-free while its customers are six feet under."
Latest
Latest News
Each news summary is created according to strict standards. Here's how we do it.
Each summary is created using a consistent editorial procedure. The target length is approximately 16 lines of 11-point Arial text in a 650-pixel-wide column. Up to 25% of a summary may be set in bold to emphasize the most important ideas. Summaries are composed of verbatim excerpts presented in the same sequence as they appear in the original news source, with very minor editorial additions. Where material has been omitted between excerpts, the omission is indicated with ellipses (...). Any words added by an editor for clarity or context appear in [brackets]. Our original news editor was Fred Burks. Tod Fletcher edited most summaries from 2007 through 2014, and Mark Bailey has served as news editor since 2014.