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.”
Comments
How much does he UNDERREPORT?
Will he go away?
GM stated that they do not know how much will be paid out. It is all up to what Feinstein decides once he gets all the claimants by December. So they took a guess using outside actuaries and basically wild ass guesses.
How do you estimate the ambulance chasers when you are rewarding people in damages even when they were a major part of their own demise.
Also GM is not going to put up a bigger number for fears it could damage stock prices unless they have good proof. Wall Street investors are watching and if they feel the number is out of line they would call out GM before anyone.
This guy needs to get a real life and a real agenda. How about fixing all the issues he and his party did not address even when they had a majority vote in both sides of congress.
He is just grand standing for the home folks here and trying to get in the news.