GM developing financial fallout estimate, Barra tells shareholders

|By:, SA News Editor

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.