General Motors Resolves Ignition Switch Cases

General Motors Company (ticker: GM) may have settled two cases regarding problematic ignition switches, though the same can’t be said for all its legal issues, reports The Associated Press.

The cases in question were due to two instances where airbags failed to work, leading to severe injuries for the plaintiffs. The company also faces other trials, with three federal cases set for 2017 and another in January 2018, a General Motors spokesman told the Associated Press.

In 2016 alone, GM saw victory in two cases and one thrown out pre-trial, in addition to settling three.

General Motors has admitted its ignition switches could indeed move from their intended spot in older cars, turning off both the engine and airbags in the process, reports the Associated Press.

A General Motors victims’ fund says the switches are linked to at least 124 deaths and 275 injuries. General Motors recalled 2.6 million cars globally in 2014 on account of the switches, which the company was aware of for over a decade.

The company has faced a hefty price tag in settling death and injury claims, amounting to almost $875 million. It’s additionally shelled out $300 million for shareholder lawsuit settlements.

The company’s stock is down 5.4 percent on the year, and moved 0.1 percent lower Tuesday morning.

These cases aside, the legacy auto industry heavyweight is noticeably prepping for the future. It’s taking electric vehicles seriously and investing in more forward-looking industry technologies. This includes a January purchase of a $500 million, 9 percent stake in Lyft and acquisition of Cruise Automation, a self-driving car technology startup.

 

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