Share “GM launches compensation program for crash...”

GM launches compensation program for crash victims

Published on NewsOK Modified: June 5, 2014 at 4:41 pm •  Published: June 5, 2014

DETROIT (AP) — General Motors plans to launch a program to compensate crash victims or families affected by an ignition switch problem that is linked to at least 13 deaths in crashes of older GM cars.

The company said it expects the program will start accepting claims Aug. 1, but didn't specify how much money will be involved. Guidelines and other details will be developed in the coming weeks by compensation expert Kenneth Feinberg, GM said.

GM has recalled of 2.6 million older small cars to repair the ignition switches. A report issued Thursday said it took GM more than a decade to issue the recall because in part employees failed to view the switch defect as a safety problem.

GM announced the hiring of Feinberg in April. He previously handled the Sept. 11 Victim Compensation Fund as well as funds for victims of the Boston Marathon bombing and the BP oil spill.

Feinberg told The Associated Press that the timeline means "I have my work cut out for me." During the next few weeks, he said he'll speak with plaintiff's lawyers, lawmakers, public interest groups and GM officials.

"I'll propose some ideas based on my experience that will form the basis for a ... compensation program," he said.

CEO Mary Barra said Thursday morning that the report by former U.S. Attorney Anton Valukas found a pattern of incompetency and neglect, but not a cover-up, at the heart of the Detroit automaker's long delay in dealing with the faulty switches.

Continue reading this story on the...