GM pays $1.3 million to Kentucky in settlement

Andy Beshear
Andy Beshear

Kentucky will get a $1.3 million settlement from General Motors for violating the state’s Consumer Protection Act and the automaker will make sure all recall repairs are complete, according to the attorney general’s office.

The settlement concluded a multi-state investigation into GM hiding safety issues related to defects in the ignition switches of more than 9 million GM vehicles, according to the attorney general’s release.

GM will pay fees to 49 states and the District of Columbia and will ensure all repairs are done, according to Attorney General Andy Beshear. The Detroit News said GM will pay out a total of $120 million.

“As the people’s lawyer, my office is working to protect Kentucky families and hold accountable companies that violate Kentucky’s consumer protection laws,” Beshear said. “The $1.3 million settlement announced today will provide much-needed revenue to the state’s General Fund to help address any budget shortfall.”

The defect in the GM ignition switches caused vehicles to move out of the run position to the accessory or off position, according to Beshear’s office.In a crash, the vehicle’s airbags might fail to deploy because of a loss of electrical systems.

The Detroit News article stated the defect was tied to 124 deaths and hundreds of injuries.

The states alleged that certain GM employees knew of the defect as early as 2004 but its personnel decided it was not a safety concern.

Since taking office, Beshear has secured penalties from GM, Volkswagen and Hyundai-Kia, which has yielded more than $4.7 million for the General Fund, the office said.

Mike Stunson: 859-231-1324, @mike_stunson