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GM To Pay $900M In Criminal Settlement Over Ignition Switches

General Motors Co (GM.N) agreed to pay $900 million and admit to misleading the government andthe public about the safety of its vehicles toend a U.S. criminal investigation into its handling ofdefective ignition switches linked to 124 deaths. The settlement and charges, which were detailed in papers filed on Thursday in Manhattan federalcourt, have transformed the relationshipbetween the automaker and the U.S. government, whichhad bailed out GM during the financial crisis. GM admitted to failing to disclose to its U.S. regulator and the public a potentially lethal safetydefect with the switches that kept airbags fromdeploying in some vehicles. The largest U.S. automaker also admitted to misleading consumers about the safety of vehiclesaffected by the defect. GM was criminally charged with scheming to conceal a deadly safety defect from its U.S. regulator,as well as wire fraud.

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Volkswagen Says 11 Million Cars Worldwide Are Affected In Diesel Deception

A scandal that has battered Volkswagen’s image in the United States spread to the automaker’s core market in Europe on Tuesday, when thecompany said that 11 million of its diesel cars wereequipped with software that could be used to cheat on emissions tests. That was more than20 times the number of cars previously disclosed. The company also said it would set aside 6.5 billion euros, or about $7.3 billion—the equivalent ofhalf a year’s profits—to cover the cost ofmaking the cars comply with pollution standards. In the United States, pressure was ramped up on Volkswagen, with attorneys general for New York and other states saying that they wereforming a group to investigate the deceit, and Senator BillNelson, a Florida Democrat, asking the Federal Trade Commission to begin an inquiryand look into remedies for owners.

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