• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: Tailfins Take Flight
  • TikTok Reveals the Hottest EVs in the Industry
  • Millions of Older Hyundai, Kia Owners May Face Trouble Getting Car Insurance
  • Bugatti Chiron Profilée Sets New Auction Sales Record
  • Another Delay for VinFast Customers
  • Ford Making Return to Formula One for 2026 Season
  • Ford CEO Farley “Frustrated” by $2 Billion Loss for 2022
  • Hyundai Ioniq 6 Achieves EPA-Estimated 361-Mile Range
  • Nissan’s Virtual EV Convertible, the Max-Out Reappears in Sheet Metal Form
  • Honda Launching Hydrogen-Powered CR-V in 2024
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2023 Lexus GX 460 Black Line
    • A Week With: 2023 BMW X1 xDrive28i
    • A Week With: 2023 Kia Niro EV
    • A Week With: 2023 Hyundai Palisade Calligraphy
    • A Week With: 2023 Ford F-150 Raptor R 4x4 Super Crew
    • A Week With: 2023 Genesis Electrified G80 AWD
    • A Week With: 2023 Land Rover Defender 110 V-8
    • First Drive: 2023 Honda Pilot TrailSport
    • A Week With: 2023 Jaguar F-Type R Coupe
    • A Week With: 2023 GMC Yukon Denali Ultimate
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automobiles > 100s, Perhaps 1,000s, Likely Eligible for GM Victims’ Compensation Plan

        100s, Perhaps 1,000s, Likely Eligible for GM Victims’ Compensation Plan

        Administrator will have free hand in deciding who gets payout.

        Paul A. Eisenstein
        Paul A. Eisenstein , Publisher & Editor-in-Chief
        June 30, 2014
        GM compensation fund czar Kenneth Feinberg.

        When General Motors formally unveils the victims’ compensation fund later today, it’s expected to give a free hand to the administrator who will have to decide on how to pay out to those involved in crashes linked to the maker’s faulty ignition switches.

        According to several sources, as well as published reports, administrator Kenneth Feinberg could eventually wind up paying out more than $1 billion, not only to the families of those killed in crashes caused by the ignition switch defect, but also to those injured, whether passengers or pedestrians, as well as those in vehicles struck by the now-recalled GM vehicles.

        Stay on Top!

        “He will have complete independence” from GM to decide who will receive compensation, and for how much, the automaker’s CEO Mary Barra said during a U.S. House subcommittee hearing earlier this month. Barra added that the compensation program will cover “everyone who lost a loved one due to this issue, or who suffered serious physical injury.”

        Exactly how much that will come to – and how many will be covered by the plan — remains to be seen. The automaker has so far stuck with the number 13 when referring to those killed in crashes apparently caused by the ignition switch problem. But that only refers to drivers, and a recent study by the Reuters news service put the actual death toll closer to 70. Some suggest it could go even higher, especially when those struck by the GM vehicles are included.

        (Faulty Takata airbags force yet another GM recall. Click Here for the story.)

        GM continues to replace faulty ignition switches, a process likely to continue through October.

        Making the final decision will be up to Kenneth Feinberg, considered the country’s most experienced handler of compensation funds, having overseen both the 9/11 program, as well as the fund set up by energy giant BP to cover those impacted by its oil spill in the Gulf of Mexico.

        The 9/11 program is expected to serve as a model for GM, and if that plan is followed, families of those killed by the ignition switch defect could look to payouts of around $2.1 million, with those injured receiving an average $400,000. The payout from the terror attack fund varied, however, with awards ranting from $500 to $8.6 million, according to a study by the Associated Press.

        GM is hoping that the victims’ compensation fund will help it sidestep the flood of lawsuits that it might otherwise face. While there have already been some suits filed, potential beneficiaries also might prefer to go this route because of a legal loophole that might otherwise protect GM.

        Under the terms of the bankruptcy settlement that let it emerge from Chapter 11 in July 2009, the maker effectively is shielded from prior damage claims. Anyone suing the maker would have to go after “Old GM,” the entity left behind in bankruptcy court. Those who accept compensation under the new fund would have to agree not to sue the automaker.

        (No more firings for botched ignition switch recall, says CEO Barra. Click Here for the latest.)

        Feinberg will hold a news conference in Washington, D.C. this morning to outline the “eligibility, scope, rules for the program, and timing of submitting claims,” according to a spokesperson.

        (U.S. auto industry nears record number of recalls — and it’s only mid-year. Click Here to find out why.)

        The program will officially begin taking claims on August 1, and a website will be set up for those who might qualify.

        The fund will not cover everyone who might consider themselves victims of the ignition switch problem. GM officials have stressed that the plan will not extend to anyone seeking compensation for claims that their vehicles have lost value due to the defect.

        A Seattle law firm earlier this month filed a class action lawsuit it said could run up to as much as $10 billion in damages due to this issue, but as TheDetroitBureau.com subsequently reported, there is little to no evidence to show that vehicles equipped with those faulty switches have lost residual – or trade-in – value.

        In all, 2.6 million vehicles have been recalled as a result of the problem, a callback that was apparently delayed by as much as a decade, according to internal GM documents. The recall covers a wide range of older models no longer in production, including the compact Chevrolet Cobalt and Saturn Ion sedans.

        The victims’ fund also will not cover any claims related to other recalls GM has announced this year, including one for all Chevy Camaro coupes produced since 2010 because they could also stall out unexpectedly.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: Tailfins Take Flight

        Yesterday
        2021 Porsche Taycan - charging

        TikTok Reveals the Hottest EVs in the Industry

        Feb. 03, 2023
        2018 Hyundai Sonata front

        Millions of Older Hyundai, Kia Owners May Face Trouble Getting Car Insurance

        Feb. 03, 2023

        3 responses to “100s, Perhaps 1,000s, Likely Eligible for GM Victims’ Compensation Plan”

        1. Jorge says:
          June 30, 2014 at 9:56 am

          This could mean cash for everyone – even those who don’t deserve it and who were not injured. The paid liars will however prefer Jackpot Justice via duped juries where unsubstantiated claims can make paid liars instant millionaires.

          Reply
        2. larry laster says:
          July 8, 2014 at 8:37 pm

          I bought a 2006 envoy this truck has been recall so much I faithfully changed the oil at 2500 miles six months ago on my way to work the oil pump went out and fried the motor .I am only bought GM products but I am done with their junk(the truck has 135,000 miles on it can I get my money back

          Reply
          1. Paul A. Eisenstein says:
            July 9, 2014 at 6:40 am

            Uh, Larry, you have 135,000 miles on it and want your money back?

            Reply

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: