The biggest US automaker, general Motors is preparing to deal with the consequences of its faulty ignition switch recall, enrolling attorney Kenneth Feinberg to aid the company evaluate the appropriate response in handling the potential liabilities.
GM CEO Mary Barra announced during a congressional panel hearing it moved to get Feinberg’s help to aid in dealing with the soon to be revealed consequences of lawsuits form victims families involved in crashes with the faulty ignition switch cars.
Kenneth Feinberg was the attorney who headed the US government’s September 11th Victim Compensation Fund, the Boston Marathon bombing compensations and the 2010 BP oil spill in the Gulf of Mexico.
Asked if the hire of Feinberg spearheads the setting of a victims fund, Barra said the executives are still due for a meeting with the attorney – set for Friday, though a decision on the matter is still a rather long way ahead – 30 or 60 days.
“We will make the best decisions for our customers, recognizing that we have legal obligations and responsibilities as well as moral obligations,” Barra said.
General Motors is at the moment under pressure to either set up a victims compensation fund (estimated by analysts at between 1 and 3 billion $) or even renounce its mid-2009 bankruptcy immunity that protects the new company from liabilities that involve prior problems.
Via Automotive News
by Aurel Niculescu
) - Wednesday, April 2nd, 2014 - filed under General Motors
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