GM Compensation Fund Hits 2,430 Claims

Dec 22, 2014 05:00 PM EST | Jordan Ecarma

General Motors' compensation program for those injured or the families of those killed due to faulty ignition switches has received a total of 2,430 claims after 104 more were added this week.

So far, the fund has determined that 42 deaths, seven severe injuries and 51 other injuries qualify for monetary restitution, Reuters reported. GM recalled around 2.6 million small cars in the first quarter of the year after reports that the vehicles could suddenly stop while moving due to faulty switches that could shift out of the "run" position if the driver's knee bumped the ignition.  

"Through Friday, GM had received 260 claims for death, 172 for catastrophic injuries and 1,998 for less-serious injuries requiring hospitalization," according to Reuters.

The automaker has set aside $400 million to cover the payments and earlier this year tapped high-profile attorney Kenneth Feinberg to administer the fund.

The GM disaster was the precursor to a record year of recalls. In 2014, auto recalls in the United States have passed 60 million, nearly doubling the 2004 record of 30.8 million vehicles recalled in one year.

Of the vehicles recalled in 2014, GM accounts for almost half; the Detroit, Mich.-headquartered carmaker has issued recalls for around 27 million cars and trucks in the U.S. this year. The company has agreed to pay a $35 million settlement to federal regulators for neglecting to report the ignition switch recall in a timely manner.

Takata's faulty air bags have been another headline-making auto problem; inflators in certain air bags could rupture, sending shrapnel flying at the driver and passengers. The Japanese supplier's air bags have been connected with at least five deaths, and 10 automakers have recalled more than 8 million vehicles worldwide for the issue.

The National Highway Traffic Safety Administration has been putting additional pressure on automakers to recall vehicles this year, likely increasing the number of repair campaigns.

"Automakers do not want to be accused of dragging their feet, so they're very quick to issue a recall," Michelle Krebs, a senior analyst at Autotrader.com, told Bloomberg News. "We're going to see lots of recalls because cars have gotten so complex and there's so much sharing of parts by all automakers."

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