GM Announces Compensation Plan for Victims of Car Crashes Related to Vehicle Recalls
The safety crisis that has consumed General Motors for virtually all of 2014 continued this past week as the company announced the recall of an additional 8.4 million vehicles around the world. The recall is for a problem with the ignition switches in the vehicles, a similar problem which caused many of the company’s recalls over the last five months. In addition to the latest recall, independent compensation expert Kenneth Feinberg revealed a plan by the company to compensate the individuals who were involved in accidents that resulted from the defective ignition switches.
The compensation plan promised to pay victims who had been critically injured a substantial sum, and more than $1 million each to the families of victims who had been killed in the crashes. The plan that Fienberg outlined even included payouts for any accidents that occur through the end of the 2014 calendar year. It is believed by many in the know that the payouts could reach into the billions of dollars when all is said and done. Feinberg said, however, that it is a critical step for General Motors in restoring the public’s trust and will help keep the company from having to spend years engaged in court battles that would certainly prove detrimental for both the company and the victims and their families.