As part of the settlement, the automaker admitted that it lied when it insisted that it had addressed the "root cause" of the problem by fixing floor mats that could trap the accelerator.
In the United States, General Motors has been sideswiped by accusations that it hid a decade-long ignition and airbag problem linked to 13 deaths.
On Tuesday, GM chief executive Mary Barra said the company has not yet figured out how much its deadly, faulty car ignitions will cost the Chevrolet and Cadillac maker.
GM has already set aside $1.7 billion to cover some of the costs of recalling 2.6 million cars with the problem ignition switches, Barra said at the company's annual shareholders meeting.
But it faces the possibility of having to spend billions more to answer lawsuits from car owners and victims of crashes tied to the ignition problem, as well as their relatives.
Copyright Agence France-Presse, 2014