Is General Motors purposely underreporting how much it will spend on compensating victims of ignition switch failure? One U.S. senator fears so.
According to the Detroit Free Press, Senator Richard Blumenthal believes that GM’s $400 million to $600 million claims estimate “undervalues the outstanding claims.” The senator wrote a letter to GM CEO Mary Barra, letting her know that if the company is intentionally underreporting the claims it will payout “then the compensation fund will unfortunately only be a continuation of the same type of avoidance of responsibility that brought about this problem in the first place.” Or maybe the politician is doing politician things and just blowing hot air.
GM’s chief financial officer, Chuck Stevens, stated last week that the company’s estimate was “the best assessment based on the data that is available to us.”
Beginning on Friday, August 1, GM’s compensation lawyer, Kenneth Feinberg, will accept claims for victims of ignition switch failures. Feinberg has stated that the fund will be uncapped and that GM will provide compensation to “the drivers, passengers and any bystanders killed or hurt in [ignition switch-related] collisions even if the person involved was drinking.”