MenuMENU
SearchSEARCH

GM Receives 120 Claims Tied to Ignition-Switch Defect

August 12, 2014
3 min to read


In its first eight days, General Motors Co.'s compensation program has received about 120 claims, more than half of which involved deaths allegedly linked to GM cars that were recalled earlier this year to fix an ignition-switch defect, reported The Wall Street Journal.


Kenneth Feinberg, the lawyer hired by GM to oversee the program, said of the claims filed so far, about 65 were reported by families who say the victims were killed in accidents involving cars that were subject to the 2.6-million-car recall.


Another dozen claims involved catastrophic injuries and the remaining are from people who were hospitalized, Mr. Feinberg added.


"We are just beginning now to review the claims and the documentation, to see whether they are eligible," Mr. Feinberg said Friday. "It will be well after Labor Day before we begin to draw some conclusions," he added. "We are encouraged by the early filings. It's a good sign that owners are aware of the program and understand the program."


The closing date to file isn't until the end of the year.


The initial tally raises questions about whether GM has underestimated the number of deaths linked to the defect, which GM knew about for more than a decade but didn't recall the cars to fix until February.


The company attributes at least 54 crashes and 13 deaths to faulty ignition-switches, which can abruptly slip out of the "on" position, stall the car and disable the air bags.


GM's compensation plan will offer payouts for any accident in which the cars' air bags failed to deploy. The checks could range from $20,000 to several million dollars to any driver, passenger, pedestrian or occupant of another vehicle, who can show they were hurt in a crash involving GM cars recalled this year for the defective ignition switch.


A death would automatically be awarded $1 million for pain and suffering above any other payments.


The program has no overall dollar limit, but a key condition is claimants must show via police or other reports a vehicle's air bag didn't deploy in the crash.


Any out-of-court death settlements connected to ignition-switch litigation can be refiled.


Mr. Feinberg said that once a victim's application is deemed eligible, and the documentation is completed, the fund will issue a payment within 90 days for simple cases and 180 days for more complicated ones.


Meantime, GM's troubles with safety recalls resurfaced this week, with more ignition-key trouble and a group of sport-utility vehicles requiring fixes to power-window switches because they might catch on fire. GM is telling customers to park the SUVs outside until they are repaired.


The power-window recall involves about 189,000 vehicles in North America, mainly from the 2006 and 2007 model years. Models affected include the Chevrolet TrailBlazer, GMC Envoy, Buick Rainier, Isuzu Ascender and Saab.


GM also announced the recall of 202,115 Saturn VUEs because the ignition key can possibly be removed when the vehicle isn't in the off position.


GM also recalled 48,059 2013 Cadillac ATS four-door sedans and 2013 Buick Encore vehicles because of lap-belt issues; 14,940 2014-2015 Chevrolet Impala sedans because of potential problems with the front-console storage compartment; 1,968 2009-2010 Chevrolet Aveo and 2009 Pontiac G3 vehicles for a brake-fluid issue; and 1,919 2014 Chevrolet Spark for potential bolt issues.

More Industry

Industryby StaffJanuary 6, 2026

Black Book: Weekly Market Update

The market analyst is preparing its 2026 forecast but expects a generally strong year based on observed late 2025 activity.

Read More →
gray Ford F-150 parked outside
Industryby Lauren LawrenceJanuary 6, 2026

Ford Holds Best-Seller Status in Used Market

The Detroit-area automaker's F-150 remains the No. 1 used vehicle and the best-selling used truck on the market, but it's falling in popularity on a state-by-state basis.

Read More →
Industryby Hannah MitchellJanuary 6, 2026

2026 Forecast Partly Cloudy

Cox Auto projects a modest fall from last year’s roller coaster sales that were sparked partly by consumers beating policy-powered prices. More volatility could be on the horizon.

Read More →
Ad Loading...
Protective Life Corporation building
Industryby StaffJanuary 6, 2026

Protective Expands Reach With F&I Acquisition

Protective Life Corp. closed its acquisition of F&I company Portfolio Holding Inc., expanding its Asset Protection Division across the automotive, RV, power sports and marine sectors.

Read More →
Vintage convertible driving along a desert highway, capturing the freedom and cultural impact of early American car travel.
IndustryJanuary 1, 2026

Driving America Forward

As America turns 250, explore how the automotive industry shaped jobs, culture, innovation, and mobility from Detroit assembly lines to today’s EV era.

Read More →
Industryby StaffDecember 23, 2025

Black Book: Weekly Market Update

Despite the week's softening conditions, the market analyst said demand for used vehicles showed in competitive bidding for newer units in better condition.

Read More →
Ad Loading...
Industryby Lauren LawrenceDecember 23, 2025

In-Vehicle AI Predicted to Spike

Frost & Sullivan expects a $238 billion market opportunity for the technology in automobiles by 2030 as AI applications shift to more mass-market applications.

Read More →
Industryby Hannah MitchellDecember 23, 2025

December Doldrums

A consumer index finds continued declines in both outlook and current conditions sentiment across nearly all demographics as big-ticket spending plans fall.

Read More →
Industryby StaffDecember 17, 2025

A Jolly Holiday Season From BBM to our Audience

The editorial team wishes you a respite from your labors and a new year full of success.

Read More →
Ad Loading...
electric vehicles charging at a station
Industryby Lauren LawrenceDecember 17, 2025

Gas Drivers Least Likely to Shop Electric

Non-EV drivers show a decreased interest in future EV buying, according to CDK.

Read More →