/ General Motors, News, Safety / Barclays Analyst Says GM to Pay More Than $2 Billion Settlement for Recalls

Barclays Analyst Says GM to Pay More Than $2 Billion Settlement for Recalls

Linked In Share
Barclays Analyst Says GM to Pay More Than $2 Billion Settlement for Recalls

Barclays analyst Brian Johnson believes that US automaker General Motors will ultimately go for a settlement fund of between $1-$1.5 billion for the customers affected by the recalls.

Brian Johnson released a research note in which he says that GM might offer the cash through its bankruptcy estate, Motors Liquidation Co. this could help the US automaker keep its protection against pre-bankruptcy liabilities. The automaker might also have to pay a federal fine of $1 billion, similar to Toyota’s situation.

“Notwithstanding the lack of legal liability, we believe GM will craft a settlement to put the issue behind it,” Johnson said.

Johnson added that GM might make public a settlement strategy before CEO Mary Barra’s testimony in front of the Congress next week.

“I’d simply say that GM’s first focus is on ensuring the safety and peace of mind of our customers involved in the recall and fixing their vehicles,” GM spokesman Greg Martin said in an e-mail.

It is not sure whether the possible settlement would cover only the customers that have been involved in accidents or all customers owning Saturn Ion and Chevrolet Cobalt vehicles 2003-2007 model years. The faulty ignition switches in GM’s vehicles have been tied to 12 deaths and 31 accidents.

by Mircea Serafim (my Google+) - Thursday, March 27th, 2014 - filed under General Motors, News, Safety. Image credit: .
Linked In Share
Related Articles
federal fine General Motors Motors Liquidation recalls settlement


Discuss: Barclays Analyst Says GM to Pay More Than $2 Billion Settlement for Recalls

Leave a Reply















Inautonews Facebook PageInautonews RSS FeedInautonews TwitterInautonews Youtube Channel

Sign up to receive our email newsletter on your email. It's safe. No spam!

Montezemolo disappointed by Marchionne’s comments
Montezemolo disappointed by Marchionne’s commentsDec.24 (GMM/Inautonews.com) Luca di Montezemolo has reacted with disappointment to suggestions his reign was responsible for ...
Ferrari to launch car in late January
Ferrari to launch car in late JanuaryDec.24 (GMM/Inautonews.com) Ferrari will launch its 2015 car on the internet in late January. The fabled Italian team's new ...
Abiteboul hails Renault’s Illien tie-up
Abiteboul hails Renault’s Illien tie-upDec.24 (GMM/Inautonews.com) Renault's F1 chief Cyril Abiteboul has hailed the new collaboration with engine expert Mario ...
Rosberg defeat impressed Daimler’s Zetsche
Rosberg defeat impressed Daimler’s ZetscheDec.24 (GMM/Inautonews.com) Nico Rosberg's attitude as he raced to defeat in Abu Dhabi perfectly encapsulated the Mercedes ...
Haas buys Marussia HQ, Caterham hopes to survive
Haas buys Marussia HQ, Caterham hopes to surviveDec.24 (GMM/Inautonews.com) Haas, the new American F1 team for 2016, has reportedly acquired Marussia's factory in Banbury, ...
Red Bull confirms Buemi as reserve
Red Bull confirms Buemi as reserveDec.24 (GMM/Inautonews.com) Red Bull has confirmed reports it has re-signed Sebastien Buemi as reserve driver. Swiss Buemi, the ...
McLaren MP4-12C gets crashed during the Gold Rush Rally
McLaren MP4-12C gets crashed during the Gold Rush RallyThe Gold Rush Rally has recently performed a victim, in the shape of a McLaren MP4-12C, which has been crashed. McLaren may have ...
Lamborghini Aventador Roadster by Office-K
Lamborghini Aventador Roadster by Office-KThe Japanese tuning specialists from Office-K have officially pulled the wraps off their newest creation, a Lamborghini Aventador ...
Shelby announcing Signature Edition Mustang Super Snake, based on previous-gen
Shelby announcing Signature Edition Mustang Super Snake, based on previous-genShelby American has officially announced its plans to introduce the Signature Edition Mustang Super Snake, which will be based on ...
Ferrari 458 Italia crashed in Dubai
Ferrari 458 Italia crashed in DubaiAnother example of the Ferrari 458 Italia has been crashed recently in Dubai, as its driver has lost control of the wheel, at ...
Paul Bailey buys Rosso Fiorano Ferrari LaFerrari
Paul Bailey buys Rosso Fiorano Ferrari LaFerrariThe newest addition to Paul Bailey’s garage is a wonderful example of the Ferrari LaFerrari, finished in Rosso Fiorano. Famous ...
Recall roundup: Aston Martin vehicles for seat heater problems
Recall roundup: Aston Martin vehicles for seat heater problemsAston Martin and the NHTSA have issued a recall for several vehicles because of a problem spotted with the seat heater. Whenever ...
BMW i8 – second incident recorded
BMW i8 – second incident recordedAnother BMW i8 has been crashed, this time in Turkey, but happily the damages are repairable. Approximately a month and a half ...
Miles Nadal buys McLaren P1 by MSO
Miles Nadal buys McLaren P1 by MSOBusinessman and philanthropist Miles Nadal has recently ordered a brand new ride, a McLaren P1 customized by MSO (McLaren Special ...
US: 2015 new car sales expected above 17 million units
US: 2015 new car sales expected above 17 million unitsAccording to industry forecasts, the US auto recovery catharsis is expected to continue next year, as the economic situation ...
Read more automotive news


2013 Frankfurt Motor Show Live Images

Lamborghini Aventador Roadster by Office-K tuning 1
Signature Edition Mustang Super Snake 1
ferrari laferrari rosso fiorano paul bailey 1
bmw i8 crash turkey 1
Miles Nadal buys McLaren P1 by MSO 1
dodge challenger srt hellcat crash 1
mclaren f1 mclaren p1 1
Fiat 500X Opening Edition 1
alfa romeo 4c spider 1
bmw 550i tuning pp-performance 1
Facelifted Infiniti Q70 1
Mercedes-Benz S63 AMG Coupe by G Power tuning 1

More automotive from inautonews
The Gold Rush Rally has recently performed a victim, in the shape of a McLaren MP4-12C, which has been crashed. McLaren may have stopped producing the MP4-12C recently, in order to make room for its successor, the 650S, but that doesn’t mean that the supercar is good for the scrap yard. Sadly, ...
read more
Inautonews Editors Section
2015 Ford Mondeo arrives in Romania – short test drive inside
2015 Ford Mondeo arrives in Romania – short test drive insideFord Romania has introduced the fifth generation of the Mondeo in Europe, over a 2-day event which has gotten us, automotive journalists, through all ...
Test Drive: Ford Fiesta ST
Test Drive: Ford Fiesta ST The current generation of the Ford Fiesta ST has been officially presented to the public back in March, 2012, during the Geneva Motor Show, and it ...
Test Drive: Renault Twizy – Back to basics
Test Drive: Renault Twizy – Back to basics Renault has been producing the Twizy for a couple of years now, in its Valladolid, Spain, facility but spotting one on European roads can turn out ...

Editors Section
Inautonews Editors Section
2012 Safest Cars list 2011 Safest Cars [Video] 2011 IIHS Safest Cars [Video] 2011 EuroNCAP Safest Cars 2010 Safest Cars [Video]

Latest in Safety Recall roundup: Aston Martin vehicles for seat heater problemsAston Martin and the NHTSA have issued a recall for several vehicles because of a problem spotted ... US: NHTSA usually wins court fights over recallsWhile not out of the ordinary in the US – a court loving country – dragging the National ...
Safety Section