GM ignition compensation to be broader than first thought

July 1, 2014
Ken Feinberg, the attorney handling compensation for victims of General Motors’ ignition recall, will set broader guidelines for payouts than first outlined by the Detroit automaker.

Feinberg revealed over the weekend that he will consider claims for any of the 2.6 million vehicles recalled by GM that were involved in an accident in which the airbags did not deploy. GM previously stated that the ignition switch recall was responsible for 54 crashes and 13 deaths, but Feinberg’s broader coverage of the problem means both of those figures will likely rise.

GM says the 2.6 million vehicles involved in the recall suffer from an ignition switch that can slip out of the “run” position, disabling the vehicle’s airbags and other functions, such as power steering and brakes.


Feinberg hasn’t announced how much the payouts will cost GM, but no cap is in place.


“It’s not as if we have to spend money wisely because there’s only a set amount set aside by GM,” he told Automotive News. “Whatever it costs, all eligible claims will be paid.”


Feinberg added that GM won’t appeal his findings.


“Once I render a final decision, GM has agreed it will honor that decision,” Feinberg said. “No appeals. No rejection. It must pay it.”


Payments will vary based on the circumstances of each crash. For example, for those cases involving death, GM could be forced to pay $5.1 million. In instances where severe injury occurred, GM could be be on the hook for $6.6 million. Victims with less severe injuries could be awarded as much as $500,000.


Feinberg is currently reviewing claims, with the process expected to conclude by next spring.

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