The General Motors ignition switch compensation fund has the macabre task of determining whether to pay settlements to those hurt by the automaker's faulty parts. The group, led by attorney Kenneth Feinberg, has been accepting claims since August 1, and the latest statistics have brought to light quite a grisly figure. It has now offered 100 people remuneration for injuries or deaths due to the bad switches.
A woman in Texas is celebrating a cleared criminal record after being exonerated in a fatal crash now linked to General Motors' faulty ignition switches. Candice Anderson was driving a Saturn Ion in 2004 when she struck a tree. The incident injured her and killed her boyfriend in the front passenger seat. When investigators found no skid marks or signs of evasion and a small amount of Xanax in her system, Anderson was indicted on a charge of intoxicated manslaughter and eventually pleaded guilty
It appears that General Motors began preparing for its ignition switch recall far earlier than previously known. According to emails viewed by The Wall Street Journal, a contract worker for the automaker allegedly placed an order for 500,000 replacement ignition switches from Delphi to prepare for the repairs on December 18, 2013. However, the actual recall for the parts wasn't announced until two months later in February 2014, and it had to be expanded several times afterwards to cover an incre
Attorneys are continuing to fight to prove that the recalls from General Motors this year allegedly affect vehicle resale values. A $10 billion lawsuit, which is hoping to obtain class-action status, could cover as many as 27 million vehicles and consolidates hundreds of smaller claims. This latest case appears to be related to the one from June in California but is now in a New York court. Both are brought by the law firm Hagens Berman Sobol Shapiro LLP.
It appears that the safety problems stemming from General Motors' faulty ignition switches may stretch further than the automaker as admitted to. In a new interview with CNN Money, Kenneth Feinberg, the lawyer overseeing the settlement process for GM, says that there are at least 19 deaths and 12 injuries being compensated so far. That's more than the 13 fatalities originally claimed by the automaker.
This has been a bad year for recalls. The US auto industry broke the record for repair campaigns months ago, and with about 25.8 million vehicles needing fixed, General Motors has gotten close to 2013's total full-year figure of 27.96-million recalled cars all on its own. You might think that used car buyers would run screaming for the hills from all these faulty models, but a recent study finds the exact opposite to be true. In fact, one of The General's vehicles actually gained value slightly,
Given General Motors' steady stream of recalls this year (including a single day with around 8.4 million vehicles needing repair), it's not a huge surprise that the cost to deal with all of the problems will be high. However, few analysts expected the tab to be this steep. In the General's just-announced second-quarter financial filing, it revealed that net income for the quarter was just $200 million, compared to 1.2 billion in Q2 2013 – a drop of over 80 percent. To put this in proper pe
New documents have revealed that a current General Motors vice president, Doug Parks, was aware of the ignition switch problems on the Chevrolet Cobalt as early as 2005. At the time, Parks, whom Bloomberg called a "confidante" of CEO Mary Barra and an integral part of GM's product development team, was the chief engineer on the Cobalt and Saturn Ion. Congressional investigators uncovered the documents, which include an email from Parks and meeting attendance lists for the ignition switch problem
The defective ignition switch that led General Motors to recall an additional 3.4 million large sedans earlier this month was manufactured in China, according to a report filed with safety regulators obtained by Reuters.
Four months into the General Motors ignition switch recall, the embattled Detroit automaker has repaired approximately six percent of the 2.59 million vehicles afflicted by the problem, which has already claimed at least 13 lives. That troubling statistic comes from a memo, obtained by Bloomberg, from congressional investigators.
General Motors will be saving a little more money everyday from now on. The National Highway Traffic Safety Administration has decided that the automaker is now finally in compliance with the regulator's records requests and ended the automaker's $7,000 a day in fines to the feds.
At this point anyone with even a passing knowledge of the General Motors ignition switch recall knows that the official number of deaths recognized by the automaker itself caused by the faulty part currently stands at 13 people. That figure is still under much debate, though. Reuters claims that it could be as high as 74 people, citing cases in the affected models with no airbag deployment, and the acting head of the National Highway Traffic Safety Administration thinks that it could be higher a
The struggle is on to decide where to hear the US district court cases relating to General Motors ignition switch recall. The automaker already paid a $35 million fine to the National Highway Traffic Safety Administration over its poor handling of the situation, and it agreed to additional oversight by the regulator. However, it still has the civil cases to deal with.
Another day, another calamity for General Motors. The beleaguered manufacturer is now staring down the barrel of $10 billion in lawsuits from the disgruntled owners of vehicles affected by the ignition switch recall. Meanwhile, a board of judges will get together and figure out whether to combine the 79 individual lawsuits into one, big suit.
General Motors' recalls have hit critical mass in the media. Not only is the company being mocked by comedians like John Oliver, Jon Stewart and Saturday Night Live, but it's getting the documentary treatment from CNBC in a special called Failure to Recall: Investigating GM. The doc talks to families and individuals directly affected by GM's ignition switch recall and shows firsthand (with assistance from Consumer Reports) what it's like to drive one of the vehicles when it turns off.
There might actually be a bit of a silver lining to General Motors' ignition switch recall of 2.6 million cars. In the end, it may mean safer vehicles on the road from every automaker. The debacle has shined a light on how little the National Highway Traffic Safety Administration actually understands about airbags and their deployment. The regulator is now working to change that, and it's investigating how to make the devices even safer.
Automaker Also Agrees To 'Unprecedented Oversight' By NHTSA
General Motors has agreed to a $35-million fine levied by the National Highway Traffic Safety Administration following its delayed reporting of the deadly ignition switch problem that has affected millions of the company's vehicles.