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GM announces compensation fund for recall victims | GM announces compensation fund for recall victims |
(35 minutes later) | |
US car giant General Motors has said it will not limit the amount of money it will pay to those injured as a result of faulty ignition switches in GM cars. | US car giant General Motors has said it will not limit the amount of money it will pay to those injured as a result of faulty ignition switches in GM cars. |
Kenneth Feinberg, the compensation plan administrator, said victims would receive compensation of between $20,000 (£12,000) and several million dollars. | Kenneth Feinberg, the compensation plan administrator, said victims would receive compensation of between $20,000 (£12,000) and several million dollars. |
At least 13 people died as a result of the faulty parts. | At least 13 people died as a result of the faulty parts. |
GM has been severely criticised for its failure to issue a recall for vehicles affected by the ignition switch defect. | GM has been severely criticised for its failure to issue a recall for vehicles affected by the ignition switch defect. |
Although problems with the part came to light nearly 10 years ago, the carmaker did not start formally recalling 2.6 million vehicles until February of this year. | |
Airbag key | Airbag key |
Mr Feinberg said that victims could include drivers, passengers, pedestrians or occupants of another vehicle that were hurt in a crash involving a GM vehicle. | Mr Feinberg said that victims could include drivers, passengers, pedestrians or occupants of another vehicle that were hurt in a crash involving a GM vehicle. |
A key factor will be if the airbag failed to deploy. | A key factor will be if the airbag failed to deploy. |
"If an air bag deployed, you're out," Mr Feinberg said at a news conference. | "If an air bag deployed, you're out," Mr Feinberg said at a news conference. |
He said that those who negotiated out-of-court settlements with GM as a result of injuries or deaths caused by the faulty switches could renegotiate their payouts. | He said that those who negotiated out-of-court settlements with GM as a result of injuries or deaths caused by the faulty switches could renegotiate their payouts. |
GM has collected evidence of approximately 3,500 death and injury claims. | GM has collected evidence of approximately 3,500 death and injury claims. |
The US car giant has been severely criticised by US regulators and politicians for its failure to recall vehicles in a timely manner. | The US car giant has been severely criticised by US regulators and politicians for its failure to recall vehicles in a timely manner. |
Evidence presented in several US Congressional hearings has demonstrated that some of GM's engineers knew about the problems with the ignition switches - which could cause car engines to cut out unexpectedly and prevent airbags from deploying - as far back as 2004. | Evidence presented in several US Congressional hearings has demonstrated that some of GM's engineers knew about the problems with the ignition switches - which could cause car engines to cut out unexpectedly and prevent airbags from deploying - as far back as 2004. |
At least 15 GM employees have been fired for their role in the delay of recalls relating to the switches. | At least 15 GM employees have been fired for their role in the delay of recalls relating to the switches. |
However, a report by former US Attorney Anton Valukas exonerated GM's chief executive, Mary Barra, and other top managers, saying that lower-level employees had failed to alert them to the safety issue. | However, a report by former US Attorney Anton Valukas exonerated GM's chief executive, Mary Barra, and other top managers, saying that lower-level employees had failed to alert them to the safety issue. |
Billions | Billions |
GM has now recalled nearly 20 million vehicles in the US this year - more than the company sold in 2013. | GM has now recalled nearly 20 million vehicles in the US this year - more than the company sold in 2013. |
Safety actions have cost GM a total of $2bn (£1.2bn) this year, and many expect the costs of the victims' compensation fund could run into billions. | Safety actions have cost GM a total of $2bn (£1.2bn) this year, and many expect the costs of the victims' compensation fund could run into billions. |
The car maker was also fined $35m by the National Highway Traffic Safety Administration (NHTSA) for its failures to report the safety defect. That was the maximum amount allowed under US law. | The car maker was also fined $35m by the National Highway Traffic Safety Administration (NHTSA) for its failures to report the safety defect. That was the maximum amount allowed under US law. |
The compensation fund will accept applications between 1 August and 31 December. | The compensation fund will accept applications between 1 August and 31 December. |
A website set up for claimants says compensation will be paid within 90 to 180 days after a claim is deemed "substantially complete". | A website set up for claimants says compensation will be paid within 90 to 180 days after a claim is deemed "substantially complete". |
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