GM is facing up to US$10 billion in ignition switch recall lawsuits

Ever since the first batch of defective ignition switches were recalled in February, GM has been under a microscope from consumers and safety administrations alike. And things don’t seem to be getting any better.

According to the Detroit News, GM is facing 79 lawsuits in the U.S. with customers demanding up to US$10 billion over the lost value of their old cars due to the defective ignition switches. Adding to that is a report from the U.S. Bankruptcy Court, claiming as of April 30, GM is also facing 20 class-action lawsuits due to the recall.

Although GM has tried to put out the fire by saying the “new GM” isn’t responsible for damage claims prior to its 2009 bankruptcy, many of the lawsuits argue the company is still liable for damages because the automaker has something called “successor liability” because the “new GM” bought the “old GM” as a continuing business. Not only that, several of the lawsuits claim the “old GM” promoted the affected vehicles as safe and reliable.

At the moment, the ignition switch recall affects 2.59 million GM vehicles manufactured between 2003 and 2011, including the Chevrolet Cobalt and HHR, the Pontiac G5 and Solstice, and the Saturn Ion and Sky. In total, GM has issued 29 recalls affecting nearly 13.8 billion vehicles thus far.

About Nick Tragianis