GM’s victims fund estimates coming soon image

The US automaker announced it’s close to finishing the estimates for the compensations needed for the victims fund of the 2.6 million cars recall for defective ignition switches linked to at least 13 deaths.

According to Chief Executive Officer Mary Barra, she said before the annual shareholders meeting that Kenneth Feinberg, in charge of the compensation fund, is not finished with the rules for the victim-compensation program the company would operate, but he’s close to finish the estimates for costs.

“We won’t know” the final cost “until the actual compensation program has been run but at that point we will make an estimate at the end of the quarter,” Barra said.

Feinberg is well known in the US, where he ran similar programs for the victims of the Sept. 11 terrorist attacks and the 2010 BP oil spill, has been tasked with the creation of the compensation fund destined for survivors and families of victims of accidents related to the defective part.

US National Highway Traffic Safety Administration data shows that so far in 2014 General Motors has recalled close to 14 million cars, far outpacing a previous record set in 2004 – of just 10.7 million cars – as the unraveling of the mishaps with the ignition switch problem triggered an internal safety spree at the automaker.

Via Bloomberg