Owners of Recalled GM Vehicles Won't Be Compensated For Depreciation

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Photo: GM
An official statement from General Motors indicates that owners of recalled GM-branded cars will not receive any kind of compensation for lost value on their vehicles. However, the Detroit manufacturer will accept physical injury or death claims connected one way or another to accidents involving sub-standard vehicles.
Kenneth Feinberg, the outside attorney in charge of General Motors' victims compensation fund, is the man that clarified this issue. Ken confirmed that “whatever claims program I establish, will not include economic loss claims for perceived diminished value,” continuing by saying he's only concerned with death and physical injury claims.

Even though General Motors currently faces more than 70 lawsuits from angry owners who feel entitled to receive compensation for economic losses, the American carmaker doesn't sweat because of it thanks to the liability shield it won after the 2009 bankruptcy restructuring scheme.

Further more, Feinberg didn't want to put a number on “how many deaths, injuries, and crashes will be encompassed by the claims program." The attorney said that everything depends on eligibility criteria and the number of individuals that will submit claims. That's kind of cheeky if you take into consideration that General Motors promised not that long ago that it'll provide compensation for all legitimate submissions.

According to GM, the claims program will be officially announced later this month. At the present moment, it is known that General Motors' compensation program will start accepting claims this August, but be warned: late submissions will be rejected, even though the eligibility window hasn't been clearly defined as of yet.
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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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