GM sued for $10 billion in “economic loss” image

This is the total amount requested in lawsuits against the US automaker and stemming from the recall of 2.59 million cars equipped with defective ignition switches.

The company has announced it’s currently facing 79 lawsuits from customers who seek a compensation that could total $10 billion for losing the value of the cars covered by the high profile recall.

The automaker has said in a US Bankruptcy Court filing that since April 30 it has been sued for 20 additional class-action lawsuits – all battling the court rule imposed back in 2009 when the “old” GM went into bankruptcy and the “new” General Motors emerged with reduced liability.

“Similar to Toyota’s widespread ‘unintended acceleration’ recall from 2009, GM has seen short-term impacts to its resale values,” Eric Lyman, ALG vice president of editorial, said in a statement. “It’s unlikely there will be any long-term effects, however, and ALG has no reason to forecast lower values than previously projected.”

The case by GM is also aided by ALG, a company that predicts future vehicle values, as it considers that many of the cars implicated in the recall – like the Chevrolet Cobalt, which only lost $300 in resale value, would be little affected by the mass media scandal.

Now, many lawsuits were stopped to wait and see what actions could be continued and a panel of judges should decide whether all suits should be combined, with an announcement due this month.