General Motors Annouces Another Massive Recall
General Motors is announcing yet another massive recall. It’s actually six separate new safety recalls.
About seven-point-six million vehicles are affected, many dating all the way back to model year 1997. The latest recalls involve mainly older midsize cars and bring GM’s total number of recalls this year to over 28 million.
Word of the recalls come the same day that a compensation fund was unveiled for victims of crashes involving faulty ignition switches in millions of GM cars.
As General Motors begins paying out settlements to victims of its delayed ignition switch recall, the man running that fund says the goal is to make sure everybody who suffered is compensated.
Attorney Kenneth Feinberg has laid out a formula that will pay out settlements based on whether there was a death or injury, the severity of the injury and a number of other factors. Many of the individual claims will top a million dollars.
The total will likely be in the billions, but Feinberg declined to give an estimate. He said that drivers, passengers, people in other cars and pedestrians will be eligible for claims, as long as they meet the criteria. There is no cap on payouts.
The General Motors Ignition Compensation Fund will begin to take claims August 1st.
The fund will only accept claims from those who have one of the two-point-six million vehicles involved in the recall. The ignition switches in those vehicles could slip out of the “on” position and cut power to the engine.
The problem has led to at least 13 deaths and 54 accidents.
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