GM's ignition-switch crisis deepens; death toll rises to 16

Mon Jun 30, 2014 7:38pm EDT
 
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By Bernie Woodall and Paul Lienert

DETROIT (Reuters) - General Motors Co's (GM.N: Quote) ongoing safety crisis over deadly ignition switches deepened on Monday with the recall of 8.23 million mostly older cars linked by the U.S. automaker to three deaths.

The latest recalls boosted the number of deaths acknowledged by GM to at least 16 in cars with switch-related problems. The automaker said it now knows of 61 crashes tied to faulty ignition switches, although U.S. lawmakers and safety regulators have said they expect the death toll to climb.

The latest fatalities occurred in two separate high-speed crashes, one involving a 2003 Chevrolet Impala, the other a 2004 Impala, according to GM spokesman Jim Cain. The air bags failed to deploy in both crashes, Cain said, but GM cannot conclusively link the nondeployment to the ignition switches.

"Among these recalled vehicles, GM is aware of seven crashes, eight injuries and three fatalities," GM said in a statement. "The fatal crashes occurred in older model full-size sedans being recalled for inadvertent ignition key rotation. There is no conclusive evidence that the defect condition caused those crashes."

A Reuters investigation in early June found that at least 74 people had died in GM cars in accidents with similarities to those that GM earlier had linked to 13 deaths involving defective ignition switches.

The report on Monday of additional fatalities and recalls "confirms our fears that GM's safety failures were much more widespread than initially reported," said U.S. House Energy and Commerce Chairman Fred Upton, a Michigan Republican, whose committee twice has interviewed GM Chief Executive Officer Mary Barra.

GM said the latest fatalities will not be included in a compensation fund set up to provide at least $1 million to victims of crashes tied to defective switches in older compact cars, including the Chevrolet Cobalt and Saturn Ion. Details of that fund, which is being administered by attorney Kenneth Feinberg, were announced earlier on Monday.

The compensation fund could ultimately cost GM billions of dollars, but is seen as critical to help repair the company's tarnished reputation and to move beyond the outstanding liability claims.   Continued...

 
Kenneth Feinberg, a victims compensation lawyer hired by General Motors, speaks with Laura Christian (2nd R), Monica Coronado (2nd L) and Rosie Cortinas (L), who are family members of General Motors crash victims, in Washington June 30, 2014. REUTERS/Joshua Roberts