GM Update: Ignition Compensation Extended to Jan 31

In a follow-up to the GM ignition switch recall (read CR’s coverage here) the company has extended the deadline to submit claims for compensation resulting from the recent ignition switch recall an additional 30 days to January 31, 2015. The decision comes following recommendation by Ken Feinberg, administrator of the fund, to do so. The company has already sent notices to 4.5 million people, and plans to send an additional 850,000 to owners this week.

GM spokesman, Jim Cain, claims the automaker supports the decision to extended the deadline.

We agreed with Ken Feinberg’s recommendation to extend the compensation program deadline. Our goal with the program has been to reach every eligible person impacted.”

The decisions comes after pressure on Capitol Hill from safety advocates due to one of the 13 fatalities caused by the defect not being linked until early November. Furthermore, the extension accounts for time to reattempt to reach registered owners who may have had a change in registration information since the time of ownership.

I believe that the many efforts to reach all possible GM automobile owners, former owners and others who might have been adversely impacted by a defective ignition switch have been both comprehensive and effective… There will always be some individuals who do not receive formal notice and are generally unaware of available compensation. But such individuals appear to be very few in number.” – Feinberg

To date, the fund has received 2,105 claims, including 217 deaths. Ten percent of claims have been rejected due to the involvement of ineligibly vehicles. GM reports it anticipates spending $400 MN in claims, with at least $1 MN for each death claim along with $300,000 for pain and suffering to surviving spouses and children.

As noted by a piece published by AutoNews, the GM recall has prompted a higher concern for safety within the auto industry. The incident has cause a ‘better safe than sorry,’ caution among automakers made evident by other major recalls. One such recall is the 17 MN vehicles recalled by multiple companies for the use of  potentially faulty airbags supplied by Takata Corp, a Japanese automative parts manufacturer.

For more information on the GM ignition switch recall, go to


Read more here- “GM Extends Ignition Compensation Deadline to Jan. 31,” (David Shepardson, The Detroit News)

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Olivia is a graduate of Villanova University where she studied Economics and History, minoring in Gender and Women's Studies. She also has experience working with federal legislatures on health care policy, women's issues, and Internet safety.


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