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ignition switch recall

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One of the six "bellwether" ignition switch lawsuits against General Motors has been dismissed, after evidence was presented showing that the plaintiff lied about the timing and extent of his injuries and his financial damages.

GM faces hundreds of lawsuits across the country alleging various harms from its delay of a massive recall for faulty ignition switches.  The switches can suddenly turn off if bumped, disabling the power steering and the airbags. 

screen grab / U.S. House of Representatives

Updated: 4:22 pm

The U.S. Justice Department has agreed to dismiss two criminal charges against General Motors related to its handling of an ignition switch recall - that is, if the automaker forfeits $900 million, and cooperates for three years on an agreement that includes the appointment of an independent monitor.

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General Motors reports earning $2.8 billion last year, despite issuing a record number of recalls.

GM recalled more than 26 million vehicles in the U.S., and 30 million globally.

GM CEO Mary Barra says the recall crisis was "galvanizing."

"We have built what I believe is the best safety organization in the industry, and we are instilling a zero-defect mindset across the company," she told analysts and investors during a conference call on the fiscal year's financial results.

Although General Motors CEO Mary Barra wasn't among the business leaders that quit President Trump's advisory councils before they disbanded, Howes says he believes she was leaning in that direction.
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Emails just released in a court case reveal General Motors ordered a half-million replacement ignition switches, nearly two months before reporting the defective switch problem to the government. The defect has been identified as a factor in 32 deaths.

Jeff Bennett broke this story for the Wall Street Journal.


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  Brynne Belinger is frustrated.  Really, really frustrated.

In June, Belinger found out her 2009 Impala was among the millions of cars being recalled by General Motors, many of them for ignition switch problems. 

But when she called her local dealership, she was told she'd need to wait until GM sent her an official notice of the recall. 

That letter didn't arrive until October.

Belinger called her dealership, only to receive more bad news.

"They're hoping they will get the part in four to six weeks, but what they've found is it's taking more like six to eight weeks.  And once they get the part in, it will take between two to four weeks to get me in for an appointment."

GM says vehicles with ignition switch problems can be safely driven as long as only the key is in the key ring -- no heavy objects, no extra house keys, etc., on the ring.

Belinger, a manager at Western Michigan University,  isn't buying it. 

GM CEO Mary Barra, center, at a Congressional subcommittee hearing on the GM ignition switch recall - April 2, 2104.
Sen. McCaskill / Flickr

DETROIT - A special compensation fund set up by General Motors has approved 27 death claims and 25 claims of serious injuries in crashes involving GM cars with defective ignition switches.

The update comes from Attorney Kenneth Feinberg, who was hired by GM to run the program.

Feinberg says he has received 178 death claims since August, including the 27 approved for payment.

1,193 injury claims have been received, including the 25 that have received compensation offers.

GM knew about faulty ignition switches in Chevrolet Cobalts and other small cars for more than a decade but didn't recall them until February of this year. The switches can slip out of the "on" position, which causes the cars to stall, knocks out power steering and turns off the air bags.

Feinberg will accept claims until Dec. 31.

2007 Cobalt, one of the recalled models
GM

For months, General Motors has estimated 13 people were killed as a result of accidents linked to a faulty ignition switch in Cobalts, HHRs, Saturn Ions, and some other small cars.

But it appears the estimate was low.

GM has established a special voluntary compensation program for victims or families of victims who can prove serious or fatal accidents were linked to the defective switch.

The program began taking claims on August 1.

GM

Missouri Senator Claire McCaskill has introduced bills that could subject auto companies and auto executives to tough new penalties for delaying a recall.

McCaskill, a Democrat, has been leading an investigation into GM's ignition switch recall scandal.  The company admits it delayed a recall of 2.6 million small cars for ten years - and at least 13 people died as a result.

McCaskill's Motor Vehicle and Highway Safety Enhancement Act of 2014 would:

NHTSA

DETROIT - General Motors says it has replaced faulty ignition switches on just under 20 percent of 2.6 million small cars that are being recalled.

The company has repaired just over 491,000 cars that are covered by the recall announced in February.

Switch maker Delphi Automotive says it has produced over 1 million parts and expects to have made 2 million by the end of August. GM says it expects all parts to be made by late October.

Delphi CEO Rodney O'Neal tells lawmakers his company has added three lines to speed up production.

Some car owners have complained it's taking too long for GM to finish repairs.

The switches can slip into the accessory position and unexpectedly shut off engines. That has caused crashes that killed at least 13 people.

General Motors

General Motors' sales rose 1% in June - despite two fewer sales days in the month, despite a delayed recall scandal, and despite the company issuing a record number of recalls.

The Detroit automaker's sales were the best for June since 2007.

Karl Brauer is an analyst with Kelly Blue Book. 

He says the media and Congress have displayed an intense interest in GM's admission that it delayed an ignition switch recall for eleven years. 

Customers aren't paying as much attention.   

"Most people look at this recall as old GM and old models that has nothing to do with what's in the showroom right now," says Brauer.

NHTSA

GM will pay a minimum of $1 million to victims of serious or fatal crashes involving cars with a faulty ignition switch. 

GM admits it delayed a recall of small cars with a defective switch for 11 years. 

GM says 13 people died and 54 were injured when the ignition switch turned off, disabling the power steering, power brakes, seat belt pretensioners and air bags. 

But attorneys for victims' families say there are many more such cases. 

The program is run by Kenneth Feinberg, who oversaw similar programs for victims of the BP oil spill and 9/11.  He says it won't be easy to determine who's eligible.

"So many of these accidents occurred long ago," Feinberg says. "The car is gone, and we've gotta come up with circumstantial evidence."

But Feinberg says he will work with families who wish to file claims, or their attorneys, to guide them through what kinds of evidence would substantiate a claim – such as police reports, medical reports, black box data, and witness statements.

The program will also pay for victims' lost earnings and long-term care.

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The recall notices just keep coming.

The ignition-switch crisis took a big new turn Monday as General Motors recalled 3.4 million cars.
That's on top of the 2.6 million small cars already called back for ignition switches that can slip out of the "run" position if the key is carrying extra weight and is somehow jarred. That could cause the engine to stall and kill power steering, power brakes, and air bags.

The problem has been linked to at least 13 deaths and over 40 crashes. However, GM sales have not been greatly affected.

This latest recall comes as CEO Mary Barra prepares for what will undoubtedly be a rough session tomorrow on Capitol Hill before the House Energy and Commerce's Oversight and Investigations Subcommittee.

*Listen to full interview above.

General Motors has found another problem with ignition switches in vehicles.

In what's sure to become extra ammunition in Wednesday's Senate committee interrogation of GM Chief Executive Officer Mary Barra, the automaker this week is recalling 3.16 million mostly older model vehicles to replace slotted keys with keys with a hole.

The company says the fix will prevent the cars from inadvertently turning off if there is extra weight on the key ring and the car goes over a bump.

The cars involved in the recall: