agent Entrepreneur logo
MenuMENU
SearchSEARCH

GM Victims Fund Opens Door on Friday

General Motors Co. on Friday starts taking applications from victims of accidents connected to defective ignition switches in its small cars, promising the first payouts from the about $400 million fund by November, reported The Wall Street Journal. The nation’s largest auto maker has said it would pay from $20,000 to several million dollars per ... Read More »

August 1, 2014
3 min to read


General Motors Co. on Friday starts taking applications from victims of accidents connected to defective ignition switches in its small cars, promising the first payouts from the about $400 million fund by November, reported The Wall Street Journal.

The nation’s largest auto maker has said it would pay from $20,000 to several million dollars per claim to cover death and injuries from crashes in certain Chevrolet Cobalt, Saturn Ion and Pontiac vehicles in which the air bags didn’t deploy. A death would automatically be awarded $1 million for pain and suffering above any other payments.

Ad Loading...

The company has been criticized for excluding other midsize and larger GM cars that also face recalls for faulty ignition switches that can turn off air bags and impede brake and power steering. In July, the company recalled 8.5 million Chevrolet Impala and larger vehicles that it said also had deaths due to air bags not activating in crashes. GM has said the circumstances are different and it has no evidence the defect led to the crashes.

Attorney Bob Hilliard, who plans to submit claims for some clients, insists GM hasn’t gone far enough with its plan. On Wednesday, Mr. Hilliard filed a lawsuit on behalf of 658 people he claims are ineligible to apply due to the auto maker’s rules.

“To me the whole thing is a shallow and superficial response and designed to save GM money,” Mr. Hilliard said.

About a dozen claims are expected to come during the first week, said GM compensation adviser Kenneth Feinberg. He said the program doesn’t have a financial cap. Most claims will be filed by attorneys whose clients want to gauge what the company’s out-of-court settlement would provide.

“It is a free preview, so why wouldn’t they do it?” Mr. Feinberg said in an interview. “If they are satisfied with the amount, they yield the right to sue and we send them a check. If they aren’t they can go and litigate.”

Ad Loading...

One victim who expects to file a claim is Caitlin Pereira, 28, who was involved in a car crash in her 2005 Saturn Ion in September 2013. Ms. Pereira was driving on a Los Angeles freeway when she collided with a dump truck. The air bag didn’t deploy and she suffered a broken nose and a concussion that she said has affected her memory.

Ms. Pereira said she has spent about $15,000 out of pocket on medical bills, which has been a hardship. “I ended up missing out on four months of work and had to relocate back home in Connecticut. I am now back to work at a new job, but the accident has set us back financially,” she said of her family. “I am just trying to recoup what I can so we can get back on our feet.”

In the 2.6 million compact cars covered by the plan, GM has said jarring the ignition key could move the switches to accessory from run, cutting power to the engine, shutting down electric steering and stopping the air bags from deploying.

Mr. Feinberg, who has sole authority over claim approvals and payouts, said he has no idea how many claims will be filed and processed by Dec. 31, when GM stops taking claims.

“If history is any indication, there are two spikes, with the first coming in the first two or three weeks and then a flood of claims before the program closes at the end of the year,” Mr. Feinberg said.

More Industry

Two white men's shaking hands
Industry•October 15, 2026

Penske Auto Group Deal a Record

The deal to take the dealership and transportation services company private sets a new pace for industry buy-sell transactions.

Read More →
Rows of cars parked in exterior lot
Industry•by Hannah Mitchell•October 8, 2026

War Toll a Damper on Used Auto Prices

Cox Automotive found wholesale depreciation to be elevated in September amid high fuel prices and this year's unusual hurricane season.

Read More →
Mechanic cleaning interior of engine
Industry•by Lauren Lawrence•October 8, 2026

Bridge the Maintenance Gap

With many drivers missing recommended maintenance, service departments offering transparency and efficiency have a better chance of reaching financially strained consumers.

Read More →
Ad Loading...
Ford F-150 truck rounding a curve
Industry•by Hannah Mitchell•October 1, 2026

California Store Has New Owner

The longtime dealership in the northern part of the state is known for robust fleet sales and has served the state capital for 115 years.

Read More →
crane lowering a pipeline into the ground
Industry•by Lauren Lawrence•October 1, 2026

BMW Plant Pursues Cleaner Energy

BMW Group Plant Leipzig has utilized hydrogen to help power its production since 2013, but a new pipeline is planned to take it to another level.

Read More →
Two dodge cars outside of dealership.
Industry•by Lauren Lawrence•September 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Ad Loading...
Five men smiling for photo in front of Honda car dealership.
Industry•by Lauren Lawrence•September 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industry•by Lauren Lawrence•September 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industry•by Hannah Mitchell•September 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Ad Loading...
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industry•by Lauren Lawrence•August 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...