General Motors announced on Thursday the company has reached a memorandum of understanding with those directly affected by the 2014 ignition switch recall.
The settlement covers about 1,380 of the individual death and personal injury claimants.
The company is expected to take a hit of $575 million in the third quarter to cover this settlement and a settlement in a class action lawsuit filed by shareholders.
The Associated Press reports that families of those who died will get at least $1 million. GM has set aside $625 million to compensate people, facing multiple lawsuits from the problem.
The company acknowledged that some of its employees knew about the problem for more than a decade, but no cars were recalled until early last year.
The Associated Press contributed to this report.
