Detroit Bureau on Twitter

Posts Tagged ‘GM ignition recall’

GM Escapes $1B Stock Payout in Ignition Case

Judge says trust acted in bad faith.

by on Jan.19, 2018

GM ultimately admitted delaying a necessary recall which eventually involved millions of vehicles.

General Motors just avoided a $1 billion bill, as a New York bankruptcy judge threw out a settlement agreement that would have forced GM to pay $1 billion in stock to owners of cars with defective ignition switches.

The case is part of the automaker’s recall of 2.6 million small cars equipped with faulty ignition switches that resulted in the deaths of 124 people. The vast majority of the cars were produced before GM’s bankruptcy in 2009.

Subscribe Now!

The automaker’s bad assets were lumped together and considered “old GM,” technically called Motors Liquidation. Wilmington Trust, the M&T Bank Corp. unit that oversees the bankruptcy claims filed against the “old GM” trust, struck the deal to resolve hundreds of personal-injury cases and a class-action suit over millions of vehicles that allegedly lost value due to a series of 2014 recalls. (more…)

GM Fund Denies 91 Percent of Ignition Recall Claims

Automaker faces hundreds of wrongful death lawsuits.

by on Aug.25, 2015

GM's compensation fund for victims of its faulty ignition switch denied 91% of the claims filed.

The team handling the fund established by General Motors completed processing the more than 4,300 claims submitted, denying 91% of them.

GM recalled nearly 2.6 million small cars last year due to a faulty ignition switch. The switch allowed the ignition to move from the “on” to the “accessories” position, cutting the power to the car’s power steering and airbag.

Your Source for Auto Safety News!

Led by Kenneth Feinberg, the attorney who oversaw similar funds for BP, 9/11 victims and other events, the fund approved 399 of the 4,343 claims filed and rejected 3,944. (more…)

GM Ignition Switch Death Count Increases to 52

Feinberg sorting through last-minute flood of claims.

by on Feb.10, 2015

The number of deaths related to GM's faulty ignition switches rose to 52.

Despite the passing of the Jan. 31 deadline to file claims, the number of claims – and deaths – associated with General Motors’ vehicles with faulty ignition switches continued to rise this week.

Kenneth Feinberg, the attorney administering GM’s victim’s compensation fund, approved another death benefit payout, bringing the total number of fatalities attributable to the faulty ignitions to 52.

Automotive Insight!

The amount of the benefit varies upon the circumstances, but each death benefit recipient receives at least $1 million. (more…)

Chrysler Recalling 800,000 Vehicles for Ignition Switch Problem

by on Jul.22, 2014

Jeep Grand Cherokees from model years 2005-2007 are part of a larger recall of Chrysler vehicles with ignition problems.

Chrysler is expanding an earlier recall, targeting nearly 800,000 older Jeep models because of an ignition switch problem that could cause the vehicles to stall and disable their airbags and other safety systems.

The move comes as federal safety regulators investigate reports that drivers inadvertently can bump the keys on as many as 1.2 million Chrysler products, causing them to turn from the On to Off or Accessory position. The problem is similar to one that has led to the recall of millions of General Motors products in recent months. But the National Highway Traffic Safety Administration is looking into the possibility the problem could occur on products built by other manufacturers, as well.

Keeping You Safe!

While Chrysler and its dealers prepare to notify customers and schedule repairs, the maker is advising owners to remove everything but the ignition key from their key rings to reduce the risk of an unintended stall-out. (more…)

Akerson Claims Barra Didn’t Know About Problem

Former CEO says board didn’t throw her under the bus.

by on May.28, 2014

Former GM CEO Dan Akerson told Forbes magazine he believes Mary Barra didn't know about the ignition switch problem before January.

Former General Motors CEO Dan Akerson came to the defense of his successor, Mary Barra, saying he doesn’t believe she knew about the ignition switch problem that kicked off the recall of more 2.6 million small cars.

He also said the company’s board of directors didn’t put Barra in an impossible position by knowingly saddling her with a crisis.

Beyond the Headlines!

“Mary has said it: The moment she became aware of the problem, as I would expect, she confronted it,” Akerson said in an interview with Forbes magazine. “She didn’t know about it. I bet my life on it.” (more…)

GM Smacked with Record $35 Million Fine

Maker accepts consent decree, agrees to change safety-reporting processes.

by on May.16, 2014

General Motors agreed to pay a record $35 million fine related to the ignition switch recall.

The National Highway Traffic Safety Administration today hit General Motors a record-setting $35 million fine. The company agreed to pay it and revise its processes on how it handles reporting safety issues in the future.

The maker confirmed it is being hit with the maximum fine allowed under law as part of a consent decree related to the delayed recall of 2.6 million small cars for ignition switch defects. The defect has been linked to 32 injuries and 13 deaths. GM also confirmed Friday it is struggling to get enough parts to complete that recall by October.

Your Automotive Source!

The fines NHTSA is levying as part of the consent decree top those imposed on Toyota Motor Corp. and Ford Motor Co. Ford was fined $17.35 million for failing to inform the owners 423,000 2001-04 Ford Escapes and Mazda Tributes of a defect in a timely manner in July 2012. (more…)

Federal Safety Agency Won’t Force GM to Park Cars

Foxx tells Senators action isn’t necessary.

by on May.08, 2014

Transportation Secretary Anthony Foxx told two U.S. Senators that his department would not force GM to issue a park-it-now order for 2.6 million recalled vehicles.

Despite the persistent efforts of two U.S. Senators, the federal government will not force General Motors to issue a “park-it-now” order for the 2.6 million small cars subject to recall for faulty ignition switches.

“Such an action is not necessary at this time,” said Transportation Secretary Anthony Foxx in letters to Senators Edward Markey (D., Mass.) and Richard Blumenthal (D., Conn.). The two had asked last month for that warning.

Subscribe for Free!

It marked the second time in two months that GM has dodged an order to park the vehicles immediately. A federal judge in Texas denied a request in April for an emergency order that GM tell owners to quit driving the cars, saying that only the National Highway Traffic Safety Administration (NHTSA) had the power to issue such a mandate. (more…)

Senators Ramping Up Pressure on GM

Letter asks feds to issue Park-It-Now advisory.

by on Apr.28, 2014

Sen. Richard Blumenthal, above, and Sen. Edward Markey sent a letter to Transportation Secretary Anthony Foxx asking him to issue a "park-it-now" order for the 2.6 million vehicles recalled by GM.

Senators Richard Blumenthal and Edward Markey continue to beat the drum to force General Motors to ask owners of the 2.6 million small cars it recalled to stop driving them immediately.

Blumenthal (D-Conn.) and Markey (D-Mass.) jointly penned a letter asking Transportation Secretary Anthony Foxx to force the automaker to make history and issue a “park-it-now advisory.”

Global Outlook!

“Every day that unrepaired vehicles remain on the road increases the risk of more injuries, deaths, and damage,” the pair wrote. (more…)

GM Asks Bankruptcy Court to Dismiss Non-Injury Lawsuits

Maker wants to end litigation solely for monetary damages.

by on Apr.22, 2014

GM asked Judge Robert Gerber to dismiss several lawsuits against the automaker related to the faulty ignition switch recall of 2.6 million vehicles.

General Motors asked a New York bankruptcy judge to dismiss the growing number of lawsuits asking for monetary compensation for simply owning any of the vehicles involved in the faulty ignition switch recall.

The automaker noted in its motion that it’s not asking the court to address litigation involving “an accident or incident causing personal injury, loss of life or property damage.” It simply wants the Judge Robert Gerber to dismiss lawsuits filed asking for money for driving the vehicles. According to GM, there are more than 50 lawsuits against the company.

Subscribe for Free!

“As your honor may be aware, numerous lawsuits have been filed across the country against New GM,” according to documents. “New GM believes that the ignition switch actions assert claims against new GM that are ‘retained liabilities’ of Old GM and therefore violate your honor’s July 5, 2009 order.” (more…)

GM Recall, CEO Barra, Become Subject of Parody

Targeted by Saturday Night Live, Jon Stewart, other comedians.

by on Apr.07, 2014

GM CEO Mary Barra gets targeted in a Saturday Night Live spoof of her Capitol Hill testimony.

“There is a thin line that separates laughter and pain, comedy and tragedy, humor and hurt,” the late Erma Bombeck once said. Humorist Mark Twain put it in only a slightly different context when he suggested, “Humor is tragedy plus time.”

That thin line remains, but in the era of the 24-hour news cycle and instant Twitter feeds, time seems to grow shorter and shorter. Just witness the way the General Motors ignition switch recall has become fodder for late night comedians like Jon Stewart, and review shows like Saturday Night Live.

Breaking News!

The long-running NBC humor program opened its show this past weekend taking full-barreled aim at GM CEO Mary Barra’s performance during two days of Congressional hearings looking into the maker’s ignition switch recall. During separate hearings before House and Senate subcommittees, Barra offered few specific answers, repeatedly stating that GM is in the midst of an internal investigation of why it waited over a decade after learning of potentially serious safety defects before ordering a recall.