Product recalls by General Motors have become commonplace in 2014. So far this year, GM has issued 65 recalls involving over 29 million vehicles. It appears that yet another recall is imminent.
General Motors dealerships have been advised to cease sales of nearly 3,000 new Chevrolet Corvettes due to two potential problems. One of the problems involves a part that is supposed to attach the driver’s side airbag tothe steering while, while the second problem involves rear parking brake cables that were improperly installed. Even though most of the affected vehicles have not yet been delivered to customers, it is expected that GM will issue an official recall notice for the automobiles.
In the first two quarters of 2014, the automaker has written off $1.5 billion for the cost of dealing with its record number of product recalls. That figure is expected to rise significantly as the company’s chief financial officer recently estimated that the cost to cover the GM ignition switch settlement fund will reach at least $600 million. That figure may even increase substantially since over 100 claims have already been submitted to the fund’s administrator. Some experts have suggested that claimants could seek as much as $10 billion. The ignition switch settlement fund was established to compensate those whoe were killed or injured as a result of the faulty ignition switches in a number of GM models.
In May of this year, GM was fined $35 million by the National Highway Traffic Safety Administration and the U.S. Justice Department is investigating the possibility of criminal charges against GM and some of its employees due to the company’s decade-long delay in acknowledging and acting upon the faulty ignition switch problem in millions of GM vehicles.
If you or a loved one suffered injury or death in an automobile accident involving a GM vehicle that was recalled due to a faulty ignition switch, contact the Ohio GM Ignition Switch Attorneys at Clark, Perdue & List.