New York - General Motors has agreed to sign a deferred-prosecution agreement to end a US government investigation into its handling of an ignition-switch defect linked to 124 deaths, a source told Reuters.
The company will pay less than the $1.2 billion (R16bn) that Toyota paid to resolve a similar case, the source said. The exact amount was not immediately known.
The deal means GM will be charged criminally with hiding the defect from regulators and in the process defrauding consumers, but the case will be put on hold while GM fulfills terms of the deal, the source said.
GM declined to comment. A spokeswoman for US prosecutors in Manhattan also declined to comment.
The terms of GM's deal with the government were not immediately known, including how many counts the carmaker would be charged with, whether the company agreed to hire an independent monitor, or how long it would need to abide by the agreement before the case may be dropped.