GM Ignition Defect Scandal Reaches Penultimate Chapter

Matt Posky
by Matt Posky

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]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Bill Wade Bill Wade on Oct 31, 2017

    It's truly a shame this site is turning into nothing but internet political trolls. Just exactly what did Trump have to do with GM junk?

    • See 4 previous
    • Peter Gazis Peter Gazis on Oct 31, 2017

      @DeadWeight U.S. auto assembly plant locations GM:Delta Township MI, Lansing MI, Flint MI, Orion lakes MI, Hamtramck MI, Lordstown OH, Fort Wayne IN, Spring Hill TN, Wentzville MO, Bowling Green KY, Fairfax KN, Arlington TX Toyota: Princeton IN, Georgetown KY, Blue Springs MS, San Antonio TX To put it another way 5 out of every 6 vehicles GM sells in the U.S. are built in the U.S. For Toyota it's about half

  • Nick_515 Nick_515 on Oct 31, 2017

    I don't care for the article, but I did log on just to express my pleasure at the use of one of my favorite words "penultimate" in the title.

    • Pig_Iron Pig_Iron on Oct 31, 2017

      Penultimate, why that's my favorite ultimate. ;-)

  • MaintenanceCosts It's not a Benz or a Jag / it's a 5-0 with a rag /And I don't wanna brag / but I could never be stag
  • 3-On-The-Tree Son has a 2016 Mustang GT 5.0 and I have a 2009 C6 Corvette LS3 6spd. And on paper they are pretty close.
  • 3-On-The-Tree Same as the Land Cruiser, emissions. I have a 1985 FJ60 Land Cruiser and it’s a beast off-roading.
  • CanadaCraig I would like for this anniversary special to be a bare-bones Plain-Jane model offered in Dynasty Green and Vintage Burgundy.
  • ToolGuy Ford is good at drifting all right... 😉
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