In the never-ending ignition switch defect saga, GM has recalled an additional 92,000 vehicles this week to add to the millions already recalled. The defect has been linked to 42 deaths so far, and it appears that the problem has no end in sight. The most recent recall affects several different truck and SUV models, and despite the large number of vehicles involved, GM states that the defect should only affect around 500 vehicles, and that it simply makes the key hard to turn when it is hot inside the cab.
“Only 500 Vehicles” Affected Says GM
It is statements like this that test the credibility of the automaker when it is under the greatest legal scrutiny in its history. How could GM possibly know that only 500 would be affected of the 92,000 recalled? And if they have the exact number based on some series of parts numbers, why not just recall those with the highest probability of malfunction? GM is probably erring on the side of caution now with any ignition related recall, but making random statistical estimates do not really serve those who may own the affected vehicles.
It seems like another attempt to pacify unrest in its customer base and the general public, by minimizing a problem that just wont go away. The issue is that most customers will believe the estimate, and may not even bring their vehicle in, thinking there is only a .005 percent chance their vehicle is affected. It is this type of corporate hubris that created the problem in the first place, where the ignition switch defect was intentionally hidden from inspectors and the public, apparently because it would have been too costly to replace.
Early Payout Offers May Lure Some Victims To Accept Low Settlement Amounts
In a related legal gambit, GM has set up a fund and is offering fatality victims $1 million for each death caused by the ignition switch defect, plus $300,000 for each surviving spouse and other beneficiaries. They state this is a better approach for victims’ families than being a part of the numerous class action suits being filed, since it provides for an earlier payout than the protracted litigation that could take years. While this may be true, any families of victims that take the payout will give up their right to sue for any further damages as part of the deal.
It is hard to say how much accident victims could be awarded via settlement or a trail verdict in this case. However, GM’s non-disclosure of the defect for 10 years and the resulting lasting harm to customers could bring in amounts that far exceed their payoff offer. GM is probably going to be in the grip of this defect recall for years, and the ongoing litigation is sure to reveal more culpability that will only increase the eventual damages awarded.
When corporations hide defects from customers, and those defects cause loss of life, litigation is the sole method to deter other businesses from the same practices. The personal injury lawsuit is the only way for the individual to bring financial pressure on corporate behavior, and to be compensated for tragic personal losses.