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The United States (US) Senator, Richard Blumenthal, a Democrat from Conneticut, is echoing the call of safety advocates in requesting the Department of Justice (DoJ) create a compensation fund for those killed or injured behind the wheel of General Motors (GM) vehicles with faulty ignition switches.
What is wrong with GM vehicles?
The American automakers have been recalling many vehicles over the past few months, with the total at around 3.1 million vehicles mainly in America. These vehicle recalls were spread over almost all of it's ten brands such as Chevrolet, Buick, Vauxhall and GMC. The main recall and the cause for at least 12 fatalities and 31 accidents, has been due to a faulty ignition switch. These defective switches inadvertently get turned from the 'run' position to the 'accessory' or 'off' position due to added weight on the key or a jolt to the vehicle. This process disables the steering, anti-lock brakes and airbags.
Currently there is an investigation by the DoJ into the fault and how GM handled the issue, as reports suggest that the company knew about the problem since 2001. The National Highway Traffic Safety Administration (NHTSA) is also looking into the issue.
The GM victims' fund
According to a new report from The Detroit News, Blumenthal wrote to the US Attorney General, Eric Holder, and called for the DoJ to “immediately intervene on behalf of those injured and killed and all who suffered damages as a result of faulty ignition switches.”
His comments follow those of Clarence Ditlow and Joan Claybrook, two safety advocates that have already called on GM to create a $1 billion trust fund to compensate crash victims. GM has so far claimed it's not liable for company actions prior to it's bankruptcy in 2009.
GM CEO, MaryBarra, commented, “There are certain cases where liabilities prior to bankruptcy – I don't know the right word – they're with the previous company.” This 'Old GM' position has been one of the most contentious of this entire ordeal. Blumenthal even called it out in his letter to Holder, requesting that the DoJ, “oppose any effort by GM to deny responsibility for consumer damages.”
GM's Mary Barra is set to testify before a House of Representatives subcommittee next week. We'll keep you updated on any more GM recall news as it becomes available.