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Tags: GM | lawsuit | cost | auto

GM Recall Costs Rise to $2.7 Billion as Lawsuits Mount

Monday, 27 October 2014 11:46 AM EDT

General Motors Co. said recall and car-loan charges for this year rose to $2.7 billion, as the company is hit almost daily by new lawsuits over the call-ins.

The Detroit-based automaker spent $680 million to repair defective ignition switches in 2.6 million cars and $325 million to rework or replace ignition keys in 12.1 million cars in the nine months through Sept. 30, according to an Oct. 23 regulatory filing. GM announced recalls of 34 million cars in the period, it said.

GM last week disclosed details of new suits filed against it in Manhattan federal court, where customers have demanded $10 billion for fallen car prices and other damages allegedly tied to recalls of 27 million defective vehicles. That number is already out of date.

The latest complaints against GM came on top of more than 150 cases counted by the carmaker. The suits are bundled together in two group actions in New York or running separately in other federal and state courts. Most accuse GM of hiding known defects for years, putting customers at risk of death, injury or financial loss.

GM denies that recalls triggered price losses in its cars. The company and Chief Executive Officer Mary Barra have said GM will fight all claims except for those by drivers who had accidents in cars with faulty switches.

The ignition switch defect was the carmaker’s highest profile recall, spurring Congressional hearings, a regulatory fine, a California county lawsuit and a federal probe.

Confirmed deaths tied to defective switches have risen to 29 and may spike as new claims are filed before a December deadline set by the automaker for victims to seek money, Kenneth Feinberg, who is handling payments to victims, said last week. Previously, GM had counted about 13 fatalities.

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Finance
General Motors said recall and car-loan charges for this year rose to $2.7 billion, as the company is hit almost daily by new lawsuits over the call-ins.
GM, lawsuit, cost, auto
294
2014-46-27
Monday, 27 October 2014 11:46 AM
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