GM to pay out $120M in ignition switch settlement

General Motors Co. will pay out $120 million in a multi-state settlement over its defective ignition switches.

Approximately $4.3 million will go into Michigan’s general fund, Attorney General Bill Schuette announced Thursday. The settlement does not include what GM has paid out to individuals.

“There is no denying having cars on the road with faulty ignition switches was dangerous,” Schuette said in a statement. “Today’s settlement shows General Motors is taking responsibility and committed to moving forward and creating quality cars Michigan residents can trust.”

The settlement spans 49 states and the District of Columbia. The ignition switch defect, which allowed the key to inadvertently move to the “off” position and disable air bags, ultimately was tied to 124 deaths and hundreds of injuries. It led to a 2014 recall of nearly 2.6 million older cars.

Schuette’s office said the ignition switch issues affected more than 600,000 vehicles in Michigan. The states alleged that some GM employees knew about the issue as early as 2004, but decided it was not a safety concern.

ithibodeau@detroitnews.com

Twitter: @Ian_Thibodeau