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General Motors will continue to be under the scrutiny of the National Highway Traffic Safety Administration for at least one more year after federal safety regulators decided to extend a consent order that allows the government to closely monitor its safety processes. Last year, GM issued a massive recall due to a defect in its ignition switch.
According to the consent order last year, GM agreed to being overseen by the government for up to three years, as the price it has to pay for delaying to recall 2.6 million small cars with defective ignition switches. This problem has been associated with almost 200 injuries and at least 104 fatalities.
On the anniversary of the initial consent order, the NHTSA announced that it will have oversight on how GM manages safety matters for one additional year at least. The reason it gave was that it has been “a productive and effective tool” to handle potential safety issues “proactively and expeditiously.”Read the entire article Ignition switch recall: GM will continue to be supervised by NHTSA for at least 1 more year
Fiat Chrysler Automobiles will issue another recall of 703,000 minivans and SUVs with a faulty ignition switch that could rotate out of position. According to the United States National Highway Traffic Safety Administration, the recall covers MY2008-2010 Dodge Grand Caravan, Chrysler Town and Country and Dodge Journey, which faulty switches could make a vehicle stall, lose power and disable its airbags.
These vehicles were recalled in 2011 and 2014. FCA’s recall is similar to the ones that plagued General Motors in 2014, linked to 57 deaths in crashes and led to the recall of 2.59 million small cars. The delays in GM’s response to the defect have led to four congressional hearings and a $35 million fine. Those switches were supplied by Delphi.
NHTSA’s investigation into Chrysler vehicles commenced after the GM ignition-switch disclosures in 2014, when it contacted all major carmakers on whether vehicle stalls might affect airbag performance. In Chrysler’s case, it has determined that the airbags in the three affected models function for two-tenths of a second if the ignition switch moves to the accessory or off position.Read the entire article FCA to recall again minivans and SUVs with faulty ignition switch
Judge Robert Gerber of the United States Bankruptcy Court in Manhattan remarked that if General Motors did violate car owners' constitutional rights by concealing ignition-switch defects during its bankruptcy, he may narrow the legal protections granted to the carmaker under its 2009 bankruptcy sale.
GM's 2009 bankruptcy led to a sale of its profitable assets to an entity that now known as General Motors Co., while its liabilities were assigned to the "Old GM" trust.
According to GM, the plaintiffs should seek compensation from the trust since their claims pertain to vehicles built before bankruptcy. The carmaker has already set up a program to compensate victims – either for those killed or injured -- due to faulty ignition switches.Read the entire article Judge says GM could be faulted if car owner rights were violated
As of last week, the compensation program for victims of General Motors’ defective ignition switch had received a total of 4,237 claims: 462 for death, 282 for catastrophic injuries and 3,493 for less-serious injuries requiring hospitalization. While the last day for submission of claims to the compensation program was set on Jan. 31, 2015, claims postmarked by that date will be eligible for review.
For that week, GM received 57 more claims, according to a report from lawyer Kenneth Feinberg, who was tapped by GM to administer the program. So far, Feinberg has determined that 131 claims are eligible for compensation: 52 deaths, eight severe injuries and 71 other injuries, according to the report of the compensation program.
He also has determined 501 claims are ineligible and is still reviewing 1,143 claims. The report also showed that 1,016 claims submitted with the program lacked sufficient paperwork or evidence while 1,446 had no documentation at all.Read the entire article GM compensation program for defective ignition switch gets 4,237 claims
The program set up to compensate victims of General Motors’ defective ignition switches have received a total of 4,180 claims for deaths and injuries since commencing in August 2014 and wrapping up on January 31, 2015. So far, the program, headed by lawyer Kenneth Feinberg, has determined to be eligible for compensation 51 deaths, eight catastrophic injuries and 69 less serious injuries.
According to fund deputy administrator Camille Biros, more death, catastrophic injuries and less serious injuries will be found eligible as the program continues to process claims received. Biros disclosed to Reuters that claims had been surging and January was the heaviest months for filing as over 1,600 claims were filed with the compensation program.
Likewise, the total number of claims could increase further as any claims not yet received with a time stamp from before the deadline would still be accepted. She said that processing of claims to determined who and who are not eligible for compensation will be done through the end of spring.Read the entire article GM compensation program receives 4,180 claims until deadline
General Motors has declined a request from United States Sens. Richard Blumenthal, D-Conn., and Edward J. Markey, D-Mass to extend beyond January 31 the application for compensation for victims of its faulty ignition switch. GM said in a statement it has conducted extensive outreach and has contacted over five million former and present owners of the recalled cars.
GM said it does not plan another extension as its goal is to be “just and timely” in compensating the families of victims.
Senators Blumenthal and Markey told GM chief executive Mary Barra that victims of the faulty switches should be given more time to decide whether to file, citing two pending factors causing some of them victims to delay – 1) a Department of Justice probe into whether the carmaker breached any laws in handling the defect; and 2) a pending federal court decision on whether the company is shielded from liability by its 2009 bankruptcy.Read the entire article GM won’t extend ignition-switch claims deadline despite calls from 2 senators
As January 23, 2015, the compensation program for victims of defective ignition switches in vehicles of General Motors has confirmed 50 deaths from the 338 filed from August until that date. The number of confirmed deaths was four times GM’s estimate and may even go higher as the deadline for claims ends on Jan. 31.
According to a report by in charge of the program, lawyer Kenneth Feinberg, 67 death claims are under review while is working with 53 applicants who haven’t documented their requests. The rest of the claims failed to qualify with Feinberg’s standards. He said that his standard diffs from what GM used and explained the difference in findings.
He said that while GM engineers look for definitive proof of ignition switch failure, he only looks for circumstantial evidence of the cause of the accident. This means that his standards are more lax than GM and there will be a greater number of eligible death claims.Read the entire article GM compensation programs confirms 50 deaths as of January 23
General Motors now has received 2,710 claims for compensation for deaths and injuries caused by faulty ignition switches in its cars. The count was as of January 9, 2015. According to the report from lawyer Kenneth Feinberg, who was administering the compensation program for GM, they received 141 new claims for compensation last week.
Sorted out, the total claims refer to 303 for deaths, 202 for catastrophic injuries and 2,205 for less-serious injuries that required hospitalization. According to Feiberg’s report, the program has determined that 12 more claims were eligible for compensation to 112 from 100.
So far, the compensation program has determined to be eligible for compensation claims for 45 deaths, seven severe injuries and 60 other injuries. On the other hand, 320 claims were deemed ineligible, while 738 were under review.Read the entire article GM compensation program had 2,710 claims as of January 9
The year 2014 marked a somewhat bad year for General Motors Co. as it was highlighted by recall crisis over a faulty ignition switch. That crisis, however, refused to die in 2015 as GM began the year issuing three new vehicle recalls, one of them covering 83,572 sport-utility vehicles and pickup trucks, this time involving an ignition lock actuator with an outer diameter exceeding specifications.
GM expects that less than 500 units have the defect. Unlike the ignition switch recall, the latest recall is not currently related to crashes or injuries. According to GM, the latest issue was discovered during an internal review after warranty party returns.
The latest recall covers MY2011 and MY2012: Chevrolet Silverado, Avalanche, Tahoe and Suburban; GMC Sierra and Yukon and Yukon XL; Cadillac Escalade, Escalade ESV and Escalade EXT. The ignition lock actuator recall also covers same nameplates from MY2007-2014 that have been repaired with defective parts.Read the entire article General Motors recall almost 84,000 vehicles over 3 issues
Sixty-four more claims for compensation from a defective ignition switch in General Motors vehicles were filed last week, according to a report by lawyer Kenneth Feinberg, who heads the carmaker’s compensation program. As of December 12, 2014, GM’s compensation program had received a total of 2,326 claims for compensation -- 251 claims for deaths, 156 claims for catastrophic injuries and 1,919 for less-serious injuries requiring hospitalization -- bringing the total claims count to.
The program has determined that four more death claims were eligible for compensation, bringing the total to 42 deaths, seven severe injuries and 51 other injuries. Of the received claims, 306 claims had been determined as ineligible and 445 were under review.
Feinberg’s report also disclosed that 568 claims failed to submit sufficient paperwork or evidence while 907 documents had no documentation at all.Read the entire article GM compensation program has now 4 more death claims
General Motors is offering to fix 2.2 million older small cars to prevent their keys from getting stuck in the ignition. These units are the same vehicles that GM recalled in February and March for a faulty ignition switch tried to 38 deaths. The vehicles cover MY2003-2011 Chevrolet Cobalt, Saturn Ion and other small cars, excluding those with manual transmissions.
GM has notified dealers of a "special coverage adjustment" that offers a free repair to customers experiencing some trouble removing the key from the ignition. The carmaker said in the notification that between three to four percent of the 2.2 million vehicles are affected by the stuck keys issue.
According to a bulletin sent to GM dealers, cars suffering from the issue might have a transmission shifter that doesn’t properly transmit an electrical signal that enables the ignition key to be turned back from the “accessory” position to the “lock” position.Read the entire article GM offers to fix 2.2 million small cars over stuck keys in ignition
General Motors is replacing ignition keys on its newest trucks due to a design issue that can make the shift lever to bump the key and shut off the engine. According to the carmaker, its investigators have concluded that the issue was not a safety defect as it only happens the driver is stepping on the brake and is shifting gears.
Thus, instead of issuing a safety recall, GM sent a technical service bulletin to its dealers early November, telling them to replace keys of customers complaining of a problem.
The bulletin covers MY2014-2015 Chevrolet Silverado and GMC Sierra 1500 pickups, and the MY2015 Chevrolet Suburban and Tahoe and GMC Yukon and Yukon XL SUVs, but excludes those with keyless start buttons.Read the entire article GM to replace ignition keys on new trucks over design issue
If you are an investor looking to invest in stocks right now, then General Motors could be a good buy for you. Likewise, GM may be the best buy in the auto industry, according to a consensus of analysts who are noted the carmaker’s highest-quality vehicles in decades and strong operating margins.
Despite very strong sales in the United States and expected record global sales in 2015, its shares are trading 7.7 times estimated earnings for the next four quarters, which means GM is around 23 percent less expensive than Toyota Motor Corp. and 55 percent discounted to the Standard & Poor’s 500 Index.
So far, the only thing weighing on GM’s stock is the fallout from its recall of millions of vehicles due to faulty ignition switch, which has also veiled the progress the carmaker has made since Mary Barra sa as chief executive in January.Read the entire article Analysts consider GM shares a good buy despite current recall crisis
The current public relations crisis at General Motors – involving defective ignition switches -- could be the largest in the industry, even surpassing the Ford-Firestone tire controversy of the early 2000s, according to PR veteran Jason Vines. Vines was in charge of PR at Ford during its own controversy. Vines was quoted by Automotive News as saying that “somebody” failed to place the safety and the satisfaction of the customer first.
He recently was in Detroit to promote his new book, “What Did Jesus Drive? Crisis PR in Cars, Computers and Christianity” as published by Waldorf Publishing. "It looks like it was [someone] far down the line,” he said, adding that someone will be going to jail for the current crisis at GM.
He divulged that near the end of his book, he says “Is this going to be worse than Ford-Firestone?” Then he quipped that the answer might be, “Yes.” He said that he is troubled by the thought that GM could be trying to make people believe the ignition-switch recall crisis is mostly already over.Read the entire article PR crisis at GM switch recall could be greater than Ford-Firestone scandal
General Motors will extend the deadline for submission of application in a program designed to compensate victims of defective ignition switches. Following recommendation of attorney Ken Feinberg, GM has decided to move the deadline from Dec. 31, 2014, to January 31, 2015. In a statement, Feinberg disclosed that notices have already been sent to 4.5 million people, and another 850,000 "supplemental notices" are being sent this week.
He remarked that the deadline was extended "out of an abundance of caution." He added that “the many efforts” to reach all possible GM vehicle owners, former owners and others affected by a faulty ignition switch have been both “comprehensive and effective."
Feinberg noted that there will always be a few people who do not receive the notice and are not aware of the compensation. In a statement, GM said its goal with the program has been to reach every eligible person impacted by the defect.Read the entire article GM extends compensation program application deadline to January 31, 2015
General Motors still failed to disclose vital information about its ignition-switch recall even after Mary Barra sat as its new chief executive, according to newly released December e-mails by the carmaker. The e-mails weren’t included the 315-page report prepared by former U.S. Attorney Anton Valukas and released on June 5.
The December e-mails detailed the carmaker’s efforts to order hundreds of thousands of replacement parts and showed that GM knows was an issue that time that it hadn’t yet reported to the United States National Highway Traffic Safety Administration. US law requires carmakers to report safety-related defects within five days.
The e-mails showed that in mid-December, or two months before GM informed owners about the faulty ignition switch, GM was already in contact with its supplier to have a better part go into production. That piece of information wasn’t disclosed to the NHTSA and wasn’t included in Valukas report. GM, however, said that its reporting system needed reform.Read the entire article E-mails show GM failed to disclose key info over ignition switch issue
The bellwether in a consolidated litigation against General Motors over a series of safety issues -- including a faulty ignition switch – is scheduled on Jan. 11, 2016, in the Southern District of New York. The date for the litigation -- consists of around 130 lawsuits so far – was set by United States District Judge Jesse Furman.
The cases cover different suits including claims for personal injury and wrongful death. The bellwether, or test trial, will involve a personal injury or wrongful death case that will be determining in the next few months, according to Furman.
A trickle of lawsuits began piling up against GM after announcing this year that it was calling back around 2.6 million vehicles due to a possible faulty ignition switch that cause shift out of position, cut power to air bags, steering and brakes.Read the entire article First trial in consolidated litigation vs GM set in January 2016
Two new death claims tied to the defective ignition switch in General Motors cars were recently approved by the program created to compensate victims. With the latest additions, the total number of death linked to the faulty switches is now 29, as of October 18, 2014.
According to the report by the office of lawyer Kenneth Feinberg, a former attorney general hired by GM to manage the program, they have received 1,517 claims for deaths and injuries since commencing it on August 1. This represents an 11-percent jump in received claims from a week ago. So far, 56 claims have been deemed eligible for compensation, including the 29 deaths and 27 injuries, the report showed.
The number of death claims surged by six to 184, while there is a continued rise in the number of claims for less-serious injuries -- those requiring hospitalization yet does not result to serious permanent damage -- from 1,108 to 1,240. The office of Feinberg will receive claims until Dec. 31, 2014, on behalf of persons injured or killed in accidents tied to the defective ignition switches.Read the entire article GM compensation program approves two new death claims, climbs to 29
As of September 26, 2014, General Motors’ compensation program for victims of accidents linked to faulty ignition switches had deemed 23 death claims as well as 16 serious physical injury claims eligible. The program, as of that date, has already received 867 claims for compensation for deaths or serious injuries or deaths since becoming online on August 1, 2014.
The program-- being overseen by lawyer Kenneth Feinberg -- will continue to receive claims until Dec. 31 on behalf of individuals injured or killed in accidents related to the defective ignition switches, which could slip out of position, thereby stalling the vehicle and rendering its airbags not deployable. This defect has resulted to a recall of around 2.6 million earlier this year.
As of September 26, a total of 153 death claims had been filed to the program. According to GM executives, it is up to Feinberg to determine how many people will be eligible for compensation under the program.Read the entire article GM compensation program has 23 eligible death claims
The fund set up by General Motors intended for compensating victims of defective ignition switches on the carmaker’s compact cars has made its first cash offers to around 15 people, according to the office of Kenneth Feinberg, a lawyer in charge of the program
The program is offering to pay at least $1 million for each death claim or more if they had dependents. The fund has received 850 claims – including 150 deaths -- as of September 24, compared to 675 as of September 19. So far, around 21 death claims has been green-lighted for compensation. The fund’s deputy administrator, Camille Biros, disclosed that the cash offers were made verbally and included cases of death and injuries.
GM has allocated around $400 million to cover the compensation costs through the program, which will continue to accept applications until the end of 2014. The claims can be filed on behalf of individuals injured or killed in accidents tied to the faulty switch.Read the entire article GM compensation fund makes cash offers to 15 people
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