GM developing financial fallout estimate, Barra tells shareholders


GM CEO Mary Barra told shareholders today the company likely would provide an estimate of the financial fallout from the ignition switch recall by early next month.

Barra said GM would have a better sense of the cost after the compensation expert hired to advise the company provides measures of how accident victims or their families will be compensated.

Barra did not say if GM would increase charges over the $1.7B already taken for recalling and repairing 2.6M vehicles equipped with potentially defective ignition switches along with other vehicles for other potential safety problems.

GM will begin accepting claims from victims on Aug. 1; estimates for the potential amount paid to compensate victims, legal fees and any settlements or judgments have ranged from less than $5B to as much as $7B.

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Comments (9)
  • funfundvierzig
    , contributor
    Comments (4868) | Send Message
     
    "estimates for the potential amount paid to compensate victims, legal fees and settlements or judgments have ranged from less than $5B to as much as $7B."

     

    The cost of orchestrated consumer fraud quickly mounts up, fellow GM shareholders.

     

    For $7 billion, we sure would like to see far more players fired than 15 mostly low-level types in the cubicles and back offices!

     

    Merely the perspective of one individual investor with both long and short positions in GM. …funfun..
    10 Jun 2014, 07:39 PM Reply Like
  • lemm
    , contributor
    Comments (1220) | Send Message
     
    funfun,Could you explain to me how being long and short in a stock can make any money.I am not the smartest investor around by far,I just don't see how that would work.
    11 Jun 2014, 05:31 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    First poster.

     

    What a surprise.

     

    Long & Short, LOL
    10 Jun 2014, 11:31 PM Reply Like
  • mahafx
    , contributor
    Comment (1) | Send Message
     
    And how did previous downsizing of staff affect the decision-making (or lack thereof)? If you want root cause, GM might need to dig even deeper. Read the entire report -- seems like internal procedures and processes wag the dog.
    10 Jun 2014, 11:33 PM Reply Like
  • sethmcs
    , contributor
    Comments (3573) | Send Message
     
    This whole thing makes me sick. GM management has no backbone whatsoever. Fight the accusations in court. Fight the right of anyone to sue after bankruptcy. Fight the government after all these things (ignition problem) were going on under their watch. Drag the case out for years until there is a new administration.

     

    Ask yourself this has any of these companies come out ahead trying to settle?
    1) BP
    2) BAC
    3) JPM
    11 Jun 2014, 01:10 AM Reply Like
  • Joe Lunchbox
    , contributor
    Comments (711) | Send Message
     
    I think she's trying to do the right thing. She's worked at GM her whole life. I think she wants her company to regain it's reputation for quality and appeal. I hope she succeeds.
    11 Jun 2014, 02:13 AM Reply Like
  • Pete Bistany
    , contributor
    Comment (1) | Send Message
     
    Anyone involved in these claims who were reported as driving without a seat belt fastened or intoxicated shouldn't be paid without a full determination as to what was really responsible for the tragedy.
    11 Jun 2014, 08:58 AM Reply Like
  • funfundvierzig
    , contributor
    Comments (4868) | Send Message
     
    BLAME-the-VICTIM is the cynical and callous defence deployed by GM's lawyers and slick PR operatives. Whether the driver was going 65 mph in a 50 mph zone or had a couple of beers, or (gasp) had a couple of house keys on the key ring is irrelevant if it was the deadly defective switch which suddenly without any warning caused the car to lose control and crash, and directly caused the death or injury. …funfun..
    11 Jun 2014, 09:13 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3360) | Send Message
     
    If you knew anything about cars, you would know an engine stalling does not cause a car to careen out of control. It only increases some of the effort on the steering and brakes after the Vacuum reserve has been used up.

     

    Thousands of people have their cars stall every day for many reasons, like running out of fuel etc, every day.

     

    All without incident

     

    The most recent published victim's "incident" involved drugs, speeding and no seatbelts.

     

    All illegal operation under the law.

     

    Airbags are only designed to work when used in conjunction with seatbelts

     

    SRS
    11 Jun 2014, 10:00 AM Reply Like
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