General Motors is expected to announce a plan Monday to pay victims of crashes caused by faulty ignition switches of the automaker’s cars.
The payouts, which are to be announced by a prominent compensation expert Kenneth Feinberg who has been hired by the company, would cost GM billions of dollars.
“General Motors wants to reach with this compensation program everyone who lost a loved one due to this issue, or who suffered serious physical injury,” GM CEO Mary Barra told a US House subcommittee during a hearing earlier this month.
Federal prosecutors and congressional investigators say there is also a possibility that GM will face charges due to criminal behaviors pertaining to the handling of the defective switches.
According to the company, the defective switches are to blame for at least 54 crashes and 13 deaths. But lawmakers say the death toll is close to 100, with hundreds of injuries.
There is one condition though for victims who want to get a payment, and that is they have to agree not to sue GM. The automaker is susceptible to legal claims because it has confessed to knowing about the switch problem for more than a decade, yet it had not recalled the cars until this year.
There were documents showing a GM vice president was aware of the ignition switch glitch which prevented airbags from inflating.
According to AFP, GM has so far fired 15 employees over the recall, most of them engineers and company attorneys.
AT/ARA
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