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Barra: GM Will Know Total Recall Cost in July
General Motors Co. CEO Mary Barra tells shareholders the company hasn't yet estimated the full cost of its ignition switch recall but will do so in a few weeks.
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General Motors Co. CEO Mary Barra tells shareholders the company hasn't yet estimated the full cost of its ignition switch recall but will do so in a few weeks.
Analysts have estimated the bottom-line cost as high as $7 billion, according to The Wall Street Journal.
GM has set aside $1.7 billion to recall and replace faulty ignition switches in 2.6 million cars. But Barra also has repeatedly declared GM will "appropriately compensate" the families of those injured or the 13 killed in crashes linked to the defective switch.
She also says GM has not set a limit to a fund being created to make those payments to victims. The pool will be set and administered by disaster compensation expert Kenneth Feinberg, who will begin accepting claims from families on Aug. 1.
Those payments are unrelated to hundreds of claims made by owners of the recalled cars who say the scandal has unfairly hurt the value of their vehicles. GM is arguing that the terms of its bankruptcy restructuring shield it from exposure to economic damage caused by the mistakes of "old" GM.
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