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Critics Say GM Ignition Switch Fund Should Cover More Victims

The high-profile fund that is offering compensation to victims of 2.6 million General Motors Co. ignition switches recalled last year doesn't cover owners of another 10 million vehicles with a similar flaw, Bloomberg News notes.

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The high-profile fund that is offering compensation to victims of 2.6 million General Motors Co. ignition switches recalled last year doesn't cover owners of another 10 million vehicles with a similar flaw, Bloomberg News notes.

The fund has so far offered compensation for 119 fatalities and 243 injuries, with decisions pending on more than 950 other claims.

Critics argue the fund's scope should be expanded to cover the additional 10 million cars GM also recalled in 2014 to fix a similar defect. GM disagrees. It describes the fund as an "exceptional response to a unique set of mistakes" that delayed a recall for 10 years.

GM tells Bloomberg the additional 10 million vehicles recalled last year for a similar performance issue don't quality for the special compensation program because they involve a flaw GM identified and promptly acted to fix.

The distinction is important. Compensating the latter group could open GM and other carmakers to demands they automatically compensate anyone for a defect-related injury or death regardless of how quickly the manufacturer moves to cure the problem.

Gardner Business Media - Strategic Business Solutions