GM to Pay $10 Billion Worth Of Lawsuit Settlements

Revised GM ignition switch 1 photo
Photo: GM
Just like we've told you a few days back, those $35 million going to the NHTSA from Government Motors' pockets aren't really enough to properly wash GM's recall sins. Currently, 79 lawsuits from very angry customers affected by the faulty ignition switches add up to $10 billion in settlements.
Since April 30th, 2014, GM has been sued with a further 20 class-action lawsuits related to the defective ignition switches. Over two million General Motors vehicles located in the United States are included in the call back operation related to this condition. The affected cars are: the 2005-2010 Chevrolet Cobalt, 2007-2010 Pontiac G5, 2003-2007 Saturn Ion, 2006-2011 Chevrolet HHR, 2006-2010 Pontiac Solstice and 2007-2010 Saturn Sky.

A few of the aforementioned lawsuits state that the company sold the vehicles to the public knowing they are defective products, neither safe or reliable. Based on successor liability, one lawsuit accuses the manufacturer of "deceptive and unfair acts and omissions of old GM." Old, pre-brankruptcy GM was bought and operated by a "new GM" according to the lawsuit, while other unhappy customers cite Delphi because this company actually manufactured the ignition switches, while GM only installed them.

In a desperate attempt to get out of this mess, GM attorneys asked judges to rule that the Detroit giant can't be held responsible for damage claims resulted from company actions before the infamous bankruptcy of 2009. However, a definitive decision will be ruled later this month, deciding which federal court will handle the aforementioned lawsuits.

Most of us agree that Government Motors doesn't have anyone to blame but itself for this huge fiasco that recently surpassed 10 million vehicles affected by very diverse safety issues. Also, let's not forget that those $10 billion wouldn't even cover the $13.4 billion in emergency government loans received by GM (and Chrysler) from President Bush a few years ago…
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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