GM Has No Plans To Compensate Owners For Lost Value On Recalled Vehicles Only Concerned With Death And Injury Claims

General Motors CEO Mary Barra will return to Capitol Hill on Wednesday for the next round of hearings on the company’s ignition switch recall.

Barra and Anton Valukas, the lead author of the Jenner & Block internal report into GM’s failure to recall 2.6 million Cobalts and other small cars for ignition switch defects for more than a decade, will testify before a subcommittee of the House Energy and Commerce Committee at 10 a.m. Wednesday, a spokeswoman said Wednesday. The scathing report from Valukas released Thursday laid the blame on a pattern of “incompetence and neglect” at GM.

A Senate Commerce Committee panel also may hold its hearing next week, though a committee spokeswoman declined to confirm the plan. The two committees held back-to-back hearings in early April.

TheSteve - 6/11/2014 3:10:06 PM

+1 Boost

If the owner gets the recalled part replaced, then isn't the vehicle the same as though no defect ever existed? That means that the owner has lost no car value due to the recall, so why compensate them?

MattDarringer - 6/11/2014 4:03:25 PM

+1 Boost

Perfectly stated.

aussie2u - 6/12/2014 9:25:03 PM

0 Boost

Um, sure... You mean like when your car is an accident and the dealer does such a spiffy job replacing fenders and repainting, nobody could tell it from new?

TheSteve - 6/16/2014 1:32:30 AM

+1 Boost

aussie2u: Read the article, which states "...deaths, injuries, and crashes will be encompassed by the claims program..."

GM is saying they won't compensate owners for *PERCEIVED* value loss due to the recall.

skytop - 6/11/2014 5:46:22 PM

+1 Boost

GM = Giant Mistake