GM recall fund won’t compensate for lost value of vehicles

June 12, 2014
General Motors reportedly has no plans to use its victims fund for lost-value compensation to owners of recalled vehicles.

The outside attorney tasked with managing the fund, Kenneth Feinberg, has clarified that he will only be accepting claims related to deaths and physical injuries.

“Whatever claims program I establish, will not include economic loss claims for e.g. ‘perceived diminished value,” he said, as quoted by The Detroit News.

The attorney also declined to estimate the number of deaths, injuries and crashes will be covered by the claims program, though the company has promised to provide compensation for all legitimate submissions.

It will depend on the eligibility criteria and the number of individuals who submit claims,” Feinberg added. “I’ll know better when the claims program is announced later this month.”

The program will begin accepting claims in August, however the company plans to reject any submissions that are filed late. The eligibility window has not been publicly defined, though it aims to be “modest.”

The company may be forced to pay economic-loss claims from vehicle owners, dealerships and shareholders, as dozens of lawsuits proceed in courtrooms throughout the US.

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