The Journal reports the settlement will likely come with a charge of criminal wire fraud against GM for making misleading statements and hiding information about the problem. Any deferred-prosecution agreement would require court approval.
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Last year, GM recalled 2.5 million cars with ignition switches that could shut off the engine which could disable airbags and cut off power steering and brakes.
GM is expected to pay a large penalty to settle the case.
The company’s expected $900 million payment, confirmed by a second source, is less than the $1.2 billion that Toyota Motor Corp. paid to resolve a similar case.
No individuals would be charged in the criminal case, one of the sources said.
Details of the GM settlement were previously reported by Dow Jones. All of the people asked not to be identified because the agreement isn’t scheduled to be formally announced until Thursday.
Outrage over the GM ignition switch case prompted a much tougher approach by Washington toward auto safety issues. Barra blamed a “culture of incompetence and neglect” and pledged never to forget what happened.
GM’s fine is likely to be less than Toyota because the company co-operated with the investigation, according to legal analysts.
“GM reacted”, he said.
The faulty ignition switch has been linked to at least 124 deaths. “I was really hoping, really, really hoping that the Justice Department would hold GM accountable”. It entered into a three-year consent agreement with NHTSA.
In May 2014, NHTSA levied a record civil penalty of $35 million against GM. GM hired former federal prosecutor Anton Valukas to investigate the matter, and he found no wrongdoing on the part of top executives. They also have talked to employees at auto supplier Delphi, which made the ignition switch.
GM set up a claims resolution facility to compensate numerous victims of the faulty part.
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Separately, victims and their families have accepted compensation from GM of at least $1 million each. It placed no cap on the amount Feinberg could award, but he is not allowed to assess “punitive damages”. There are also suits pending by shareholders.
