A new development has come to light in the ongoing General Motors ignition switch scandal.
Thursday, Tennessee Attorney General Herbert Slatery announced a $120 million settlement with the automaker.
“It is unacceptable for a company to knowingly hide significant safety concerns from the public,” General Slatery said. “This settlement holds GM accountable for their dishonesty and ensures a change in company behavior that will better protect consumers.”
That move followed GM's failure to tell car owners about safety defects in a timely manner.
Reports stated GM issued seven vehicle recalls in 2014 in response to the ignition switch and unintended key rotation issues.
Those issues affected more than 9 million vehicles in the U.S.
The states have alleged GM and certain employees knew about the issues as early as 2004.
Reports stated that, according to the settlement, GM shall:
- Not represent that a motor vehicle is “safe” unless they have complied with the Federal Motor Vehicle Safety standards applicable to the motor vehicle at issue.
- Not represent that certified pre-owned vehicles that GM advertises are safe, have been repaired for safety issues, or have been subject to rigorous inspection, unless such vehicles are not subject to any open recalls relating to safety or have been repaired pursuant to such a recall.
- Instruct its dealers that all applicable recall repairs must be completed before any GM motor vehicle sold in the U.S. and included in a recall is eligible for certification and, if there is a recall on any certified pre-owned vehicle sold in the U.S., the required repair must be completed before the vehicle is delivered to a customer.
The settlement covered 49 states and Washington, D.C.
