GM admits failures in $900M settlement

NEW YORK (AP) — General Motors admitted it failed to disclose to the public a deadly problem with small-car ignition switches as part of a $900 million deal reached with federal authorities to avoid criminal charges, authorities announced Thursday.

The automaker will retain an independent monitor to review and assess its policies to ensure compliance with the agreement with the government, according to court papers released by U.S. Attorney Preet Bharara in Manhattan.

The prosecutor planned a noon news conference Thursday to formally announce the deal. Court papers pertaining to it were signed Wednesday.

Besides the $900 million forfeiture and the monitor, the deal calls for two criminal charges to be dismissed if the company complies with terms of the agreement for three years. The $900 million must be paid by Sept. 24.

The two-count criminal information accuses GM of wire fraud and scheming to conceal material facts from a government regulator.

Last year, GM recalled 2.6 million older small cars worldwide to replace the faulty switches. Those included the Saturn Ion and the Lordstown-built Chevrolet Cobalt.

The faulty switches can unexpectedly slip out of the run position to off or accessory. That shuts off the engine and disables power-assisted steering, power brakes and the air bags.

The problem caused crashes that killed at least 124 people and injured 275 more, according to lawyers in charge of a fund set up by GM to compensate victims. Families of those who died will get at least $1 million. GM has set aside $625 million to compensate people who accept a settlement with the fund. GM also faces multiple lawsuits related to the problem.