General Motors revealed in its quarterly earnings Thursday that it has put aside $400 to $600 million for its uncapped ignition switch compensation program. The program is led by compensation expert Kenneth Feinnberg and looks to compensate victims of crashes caused by the faulty ignition switch found in millions of GM’s small cars.
Victims eligible for compensation may begin filing for their payouts in August. The program is uncapped as it is unknown exactly how much it will cost to compensate victims, but the $400 to $600 million figure is the company’s best estimate at the amount.
“Due to the unique nature of the program, this estimate contains significant uncertainty and it is possible the total cost could increase by approximately ($200 million),” the automaker said in a statement.
GM is also feeling the effects of the massive expense that recalling 29 million cars requires. The automaker had to set aside an additional $874 million to cover the cost of repairing the record number of cars it has recalled so far this year, leaving it with a profit of $190 million, compared to $1.2 billion a year prior.