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GM’s Recall Was Too Little Too Late

General Motors recalled hundreds of thousands of cars due to their faulty ignition, but was it too late?  The death toll tied to faulty ignition switches in General Motors’ small cars has risen to 19, according to a compensation expert hired by the company. That number is likely to rise.

Kenneth Feinberg determined 19 wrongful death claims are eligible for payments from GM; the company’s estimate of deaths has remained at 13 for months, although the automaker acknowledged the possibility of a higher count.

Feinberg received 125 death claims due to the faulty switches in older-model small cars such as the Chevrolet Cobalt. The rest remain under review or require further documentation, he said in a report issued Monday.

“The public report is simply reporting on those eligible to date,” Feinberg spokeswoman Camille Biros said in an email. “There will certainly be others.”

GM has admitted to knowing about the ignition switch problem for over a decade, though it didn’t begin recalling the switches in 2.6 million small cars until earlier this year. The automaker hired Feinberg to compensate victims of crashes caused by the switches, and Feinberg has said GM has not limited the total amount he can pay.

Some lawmakers have estimated the death toll is closer to 100.

Biros, citing confidentiality agreements, said Feinberg will not identify any of those eligible for payments, nor will he say if the 19 deemed eligible include the 13 deaths that GM has documented. GM has not identified the 13 victims; the U.S. National Highway Traffic Safety Administration says it has not tallied the total number of deaths.

Biros said no claims have been rejected yet, although Feinberg is in the process of turning down a few because they don’t meet the requirements for compensation. Feinberg will issue reports each Monday on how many claims have been granted, she added.

Feinberg also has received 320 claims for compensation due to injuries. Of those, 12 have been deemed eligible for payments so far.

Of the injury claims, 58 were in the most serious category, seeking compensation for injuries resulting in loss of use of limbs, amputation, permanent brain damage or pervasive burns, the Feinberg statement said. Another 262 claims are for less-serious injuries that required hospital stays or outpatient medical treatment within 48 hours of the crash.  Will GM be able to get out of this without it affecting their brand?

 

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