GM To Pay Victims Of Ignition Switch Malfunction $1 Million, Recalls Continue
General Motors will pay a minimum of $1 million to the families impacted by accidents linked to malfunctioning ignition switches in the company’s cars.
According to a plan devised and unveiled by GM’s compensation expert Kenneth Feinberg, the base payout will be $1 million for families who lost loved ones due to the issue. The company will then add funds for estimated lifetime earnings and $300,000 for the spouse and dependents. “Claims will be processed under three categories: Death, serious injury including paralysis and brain damage, and lesser injuries that required hospitalization or outpatient care within 48 hours of the accident,” notes Time magazine.
GM has owned up to at least 54 crashes and 13 deaths tied to the ignition problem. Car engines and air bags would suddenly turn off while the car was in motion.
The company will accept claims between August 1 and December 31 with payments coming next year.
Meanwhile, the recalls at the company continue, with 8.4 million cars from the years 1997 through 2014 included this time. Once again, the ignition switch is the problem. Models include the 1997 through 2005 Chevrolet Malibu and the 2003 through 2014 Cadillac CTS. Another 189,000 Chevy Trailblazers have also been recalled for an electrical problem. General Motors says it will be spending $1.2 billion on the recalls for the second quarter.
Do you own a GM car? Do you still trust the company after all of the problems in recent months?