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General Motors Corporation (GM), Recalls – Facts – Part I

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General Motors Corporation (GM), Recalls – Facts – Part I

October 7, 2014 by Parrish Law Firm, PLLC

Mary Barra, GM’s new President has announced that 15 employees have been dismissed as a result of a delayed recall of vehicles relating to defective ignition switches.

In June of 2014, GM submitted results to lawmakers of an investigation overseen by Anton R. Valukas who is a former United States Attorney into the company’s handling of defective ignition switches. GM delayed the recall of over 2.6 million Chevrolet Cobalts, Saturn Ions and other vehicles with defective ignition switches that can accidentally turn off the engine and disable power steering, power brakes and air bags. As a result GM paid a record-setting $35 million fine to the National Highway Traffic Safety Administration for delaying the recall. The Justice Department, 45 state attorneys general and the Securities and Exchange Commission are investigating GM’s actions regarding this delay.

Defective Ignitions

October 6, 2014 – General Motors Co. has added nearly 50,000 more cars to its list of more than 14 million vehicles identified this year as having ignition key slippage problems. The latest GM recall notice covers the 2008-2009 Pontiac G8 and the 2011-2013 Chevrolet Caprice.

There are several factors that can cause ignition slippage, one reason that is cited most often is that when a driver’s knee bumps the ignition switch, the car can turn off. When the vehicle is switched off, the power steering, power brakes and air bags are switched off – this has caused numerous accidents, some of them fatal.

General Motors’ compensation fund has now approved 24 death claims for people killed as a result of defective ignition switches in since-recalled cars, an increase of two since last week. They have also approved 16 claims for injuries. There are approximately 19 claims being filed each week – there are expected to be over 100 more forthcoming.

The fund that is administered by lawyer Kenneth Feinberg has received 1,130 claims, including 165 for deaths, through Friday, October 3, 2014. It has received 79 claims for serious injuries and 886 for less-serious injuries. The fund has said that they will continue to accept claims through December 31, 2014.

GM has stated that they expect to spend $400 million on claims, but has also let it be known that it could rise as high as $600 million.

According to the US News and World Report, the fund has agreed to pay at least $1 million for each death claim, along with $300,000 payments to surviving spouses and children for pain and suffering. In addition, it will calculate the economic value of the life lost. The fund has no cap on overall payments.

Additional information on GM Ignition Compensation Claims Resolution can be found here: http://www.gmignitioncompensation.com/. Parrish Law Firm is prepared to help you should you need our assistance regarding this.

The Parrish Law Firm Personal Injury – Accident Attorney works with Northern Virginia residents who have been injured because of another party’s negligence and are looking for fair compensation. Contact us today for a free case consultation or call us at 703-906-4229.

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A representative of the Parrish Law Firm, PLLC researched and wrote this article with Mr. Parrish’s consent. If you have any questions regarding the legal implications of what you have just read, please send us your question by clicking here so we can have our attorney review it.

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