General Motors Co, the biggest US car manufacturer, announced on Friday that it is pulling back another 312 280 vehicles, most of which due to ignition switch problems, adding to this years record-breaking recalls of almost 29 million cars. Meanwhile, GMs compensation program was reported to have received around 130 claims during its first eight days, half of which involved deaths allegedly linked to previously recalled cars with faulty ignition switches.
The car manufacturer announced six recall actions on Friday, with the largest being 215 000 Saturn VUE sport-utility vehicles made between 2002 and 2004. The SUVs are being pulled back because the ignition key can be removed while the vehicle is on, and two crashes, including one injury, were allegedly related to the defect.
The other smaller recalls include 72 786 Cadillac ATS sedans, Chevrolet Trax SUVs and Buick Encore SUVs, manufactured in 2013, which needed their front lap belt pretensioners fixed. GM said it was not aware of any accidents related to the issue and has halted sales at dealerships before repairs are concluded.
The company also pulled back around 15 000 Chevrolet Impalas from model year 2014 and 2015; about 2 000 Chevrolet Aveos from model year 2009-2010, Chevrolet Optras made in 2007 and Pontiac G3 cars from 2009; around 3 000 2014 Chevrolet Sparks and 3 600 Cadillac ATS exports from model years 2013 and 2014 to fix various issues. No accidents tied to these problems have been reported, GM said.
Meanwhile, Kenneth Feinberg, the lawyer hired by GM to oversee the companys compensation program for claims linked to the faulty cars, said that the fund has received more than 120 claims since it was started August 1st. About 63 of the claims were linked to deaths allegedly related to 2.59 million cars GM recalled earlier this year due to faulty ignition switches, but they were not yet confirmed as eligible for compensation. That number was almost five times the 13 death cases that GM had earlier admitted being linked to the flawed ignition switches. Another 65 claims tied to physical injuries and hospitalization were filed through Friday afternoon.
Mr. Feinberg said, cited by the Wall Street Journal: “We are just beginning now to review the claims and the documentation, to see whether they are eligible. It will be well after Labor Day before we begin to draw some conclusions. We are encouraged by the early filings.”
General Motors said on July 24th it has planned to pay plaintiffs at least $400 million in compensations, but since the fund is not capped, the amount can grow to as much as $600 million. The payouts are expected to be completed by June 2015 and will vary between $20 000 and seven-figure numbers, compensating each driver, passenger or pedestrian who can prove they were hurt in a crash tied to the defective ignition switches. Mr. Feinberg said the families of people who died in the crashes with confirmed GM fault would receive at least $1 million in compensations.
General Motors Co rose by 1.27% on Friday to close the trading session in New York at $33.53 per share, marking a one-year change of -6.89%. The company is valued at $53.13 billion. According to CNN Money, the 14 analysts offering 12-month price forecasts for General Motors Co have a median target of $45.50, with a high estimate of $54.00 and a low estimate of $33.00. The median estimate represents a +35.70% increase from the last price of $33.53.
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