But it's not all's well that ends well for the victims.
It all started in 2014 and has taken until 2017 to reach a final resolution. Needless to say, it’s been a difficult three years for General Motors because of the ignition switch scandal that badly hurt its reputation. But today, according to GM, the automaker has resolved a US Securities and Exchange Commission investigation surrounding that scandal. GM has consented to an administrative SEC Cease and Desist Order, but didn’t admit or deny any wrongdoing.
What’s more, the agreement doesn’t call into question any of GM’s current or prior financial statements or disclosures. However, GM has fixed all defected switches with customers and regulators at both the state and federal level. In addition, GM will pay a $1 billion civil penalty. And yet no former or current GM executives will face prison time despite the fact that 124 people were killed because of those defected switches. To its credit, GM did reorganize its vehicle engineering teams for greater transparency, urgency and accountability, and created a new global vehicle safety organization to guarantee zero-defect safety systems.
Unlike Volkswagen and its own scandal, Dieselgate, GM admitted no guilt and, as previously stated, no individual was charged with a crime. However, GM has agreed to pay settlements to victims and their families, but we doubt that alone will bring them solace.