General Motors to Shell out Nearly $1 Billion in Criminal Fines
In response to General Motors’ faulty ignition switch scandal, which rocked the auto industry in 2014 and led to the company recalling 2.6 million vehicles, the automaker has agreed to pay $900 million to settle criminal charges associated with its defective switches.
Announced by the Justice Department on September 17, 2015, the settlement additionally requires GM to hire an independent monitor to insure the company’s recall process is compliant with federal safety regulations. The automaker has already agreed to pay the maximum fine, $35 million, to settle civil charges with the NHTSA.
A compensation fund—set up by GM to pay families of those who died or those who were injured behind the wheel of a GM vehicle when its ignition switch inadvertently powered down the entire car, rendering its safety systems useless—is slated to cost GM an additional $600 million.