Info About the GM Recall

A recall of cars, along with charges to their car loan program, has cost General Motors close to $3 billion over the past year. The company is undergoing a very tough time, with new lawsuits cropping up every other day. A lot of their cars that were released over the past few years have encountered serious problems.

The company that is based out of Detroit spent record amounts to fix problems in existing cars. For example, they spent close to $700 million repairing the ignition switches in about 2.5 million cars. These switches were defective. Another $300 million went towards repairing the ignition keys for 12 million cars. This money was spent over the last 12 months. There were 35 million total car recalls in that period of time.

A total of 27 million defective car recalls are part of lawsuits filed against General Motors. A vast majority of these lawsuits have been filed in the Manhattan Federal Court. Customers are asking for refunds of up to $10 BILLION from General Motors. These refunds are tied to cars that did not function properly, cars that dramatically lost value due to defects, and other injuries or trouble faced by the car owners.

The lawsuits against General Motors in New York court are very significant. The company may have the funds to pay some of the damages, but their reputation may not survive a guilty verdict. They are being accused of purposefully hiding car defects while selling them. It is one thing for defects to emerge later on, but for a company to knowingly release defective car models to showrooms and dealerships is outrageous.

Many customers who bought a General Motors car claim that their vehicle has rapidly lost value due to these problems. Even if the car in question is not defected, the reputation of GM cars is such that no one will buy them for value.

The most high profile problem faced by General Motors is related to the ignition switch and keys. Given the widespread nature of the problem, there is a real consensus among experts that GM had to have known about this defect when releasing the cars.

There have been 30 deaths as a result of defective switches in GM cars. This number may rise with victims becoming aware of potential money in lawsuits against the company.

It is unclear how General Motors will emerge from this situation, but they are definitely in a lot of trouble.

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