By on August 5, 2015


General Motors announced Tuesday that it’ll settle with at least 124 families who claimed that faulty ignition switches killed family members, Car and Driver is reporting. The settlement comes after a long review to identify victims and people injured by the defective car part that could shut off and disable airbags in the process.

The switches were part of a 2014 recall that involved 2.6 million cars, including the Chevrolet HHR and Cobalt, Saturn Sky and Ion, and Pontiac Solstice and G5. The reported number of dead people was revised as part of a year-long investigation after GM initially acknowledged only 13 fatalities.

The settlement may cost GM up to $625 million, according to filings with the Securities and Exchange Commission. In all, 124 fatalities and 274 injuries have filed claims against the automaker. In addition to federal lawsuits, the automaker faces investigations by 50 state attorneys general.

The settlement may very well be the end of the beginning or the beginning of the end for a sad chapter in the automaker’s history where it initially covered up, failed to contact families, then failed to acknowledge the scope of the tragic problem.

As a result of the botched recall, the federal government has taken a tougher stance on the automakers and how it handles recalls, which could dramatically change the oversight bureau that handles automotive safety.

Nonetheless, the historical significance of the tragically bad recall will be noted as such: 124 deaths have been attributed to the faulty switch that would have cost $1 to fix in each car.

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4 Comments on “GM Will Settle with 124 Families Over Ignition Switch Deaths...”

  • avatar

    GM hatred in 3, 2, 1…

  • avatar

    Gee sounds like a bargain, take away 33% for the “injury settlements” (seems appropriate) that leaves 412-mill. dived out that’s only 3.3 million dollars per victim. Getting away with murder .. literally.

    Scope of absurdity == Barra has of late 2013 fillings 7,500,000 shares in psu @ 35$ per share alone .. IE she alone can pay 50% the slap on the wrist fine’.

    counting her RSUs she has another 2,500,000 un rsu’s … all sold 350-mill.

    • 0 avatar

      Note that is 50% of the fatality portion of the 625-mill fine.

    • 0 avatar

      Under the backdrop that “new” GM, by law, didn’t have to do anything because this is a problem with “old” GM products.

      That is how bankruptcy law works. GMs culpability for this better than Ford Explorer rollovers, Toyota pedal entrapped floormats, Honda airbags, Ford cruise control relays, Ram steering systems, and JGC gas tanks.

      If GM hadn’t gotten a managed bankruptcy and instead was forced to be put out of business – these owners would have gotten nothing from anyone.

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