General Motors’ (GM) announced its plan to compensate victims of its defective ignition switch but continues to recall vehicles not mentioned as eligible under terms of the compensation plan

Beasley Allen Founding Shareholder Jere L. Beasley is calling on General Motors (GM) and its compensation fund administrator Kenneth Feinberg to expand the list of those eligible to apply based on the automaker’s growing list of recalled vehicles. The fund was announced yesterday, and will begin accepting claims for review August 1. The plan was announced in the morning, and by the afternoon GM recalled more than 8 million more vehicles globally for ignition switch problems. The latest recall involves 17 older model (1997-2005) vehicles. GM attributes seven crashes, three deaths and eight injuries to this latest group of recalled vehicles, which it says allows “inadvertent ignition key rotation.”

“GM’s proposed compensation plan is already too limited, failing to address all the vehicles that have been recalled for ignition switch defects,” Beasley says. “GM keeps adding to the number of vehicles it recalls, and admitting to more deaths and injuries linked to the defective ignition switch. If GM really wants to do what it promised, and make things right for all the victims of its faulty product and subsequent cover-up, it needs to expand the group eligible to participate in the compensation fund.”

Read Jere Beasley’s letter to Kenneth Feinberg (pdf)

“Today, we are calling on Mr. Feinberg and GM to include all of the vehicles that have been recalled because of the defective ignition switch in the compensation fund. That will include adding the 8.4 million vehicles recalled yesterday. GM must go back to the drawing board and revise its compensation plan for the hundreds of innocent victims who deserve fair recourse. It’s time for GM to start keeping its word.”

In February 2014, only after evidence emerged in a wrongful death lawsuit proving GM had longstanding knowledge of the ignition switch defect, did the company start recalling its affected vehicles. That initial recall now encompasses 2.6 million vehicles, and GM admits to 13 deaths related to the defect. Earlier this month, GM announced it is recalling an additional 3.4 million midsize and large cars for the same ignition switch defect.



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