GM To Spend $400M To $600M Victim Compensation


Published 07/24 2014 10:53AM

Updated 07/24 2014 10:56AM

General Motors expects to pay between $400 to $600 million to compensate victims of a faulty ignition switch tied to at least 13 deaths.

The automaker listed the figure in its quarterly results.

Families of those killed or injured can start filing for payments next month.

GM has admitted its employees knew of the defective ignition switches a decade before recalling 2.6-million cars earlier this year.

The automaker has been under fire from Congressional, Justice Department and Federal Safety Regulators for the delay and could face criminal charges.

General Motors also set aside an additional $874 million for the cost of repairing the record 30 million cars it has recalled so far this year.

The combined reductions left the company with net income of only 33 million in the quarter.

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