GM recalls over 8M more cars over faulty switch linked to deaths

General Motors on Monday widened the list of older models it is recalling for faulty ignition switches linked to deaths, adding 8.23 million compact and midsize cars that it has linked to seven crashes and three fatalities.

GM this year has recalled 29 million vehicles, more than half of them — roughly 14.7 million — because of potentially defective ignition switches.

On Monday, GM issued two separate recalls, both related to ignition switches which it said could be turned off because of "inadvertent key rotation." In turn, that could shut off the engine and cut power to steering, brakes and air bags.

Affected are 7.61 million older sedans and coupes dating back to model year 1997, including 2000-2005 Chevrolet Impalas and 1997-2005 Chevrolet Malibus. Also recalled were 616,179 Cadillacs from model years 2003-2014, including the CTS coupe and sedan and the SRX crossover.

Earlier on the same day, GM announced that it will pay at least $1 million for each death caused by defective ignition switches installed by the auto giant — a flaw the company has linked to at least 13 fatalities, and which could result in billions of dollars in cpmpensation to victims and their families.

Kenneth Feinberg, a compensation expert hired by General Motors to manage the victims’ fund, outlined plans Monday to hand over damages to those affected but refused to be drawn on how many people that could involve.

But the program will be open to a broad range of people and should compensate all victims by the end of next year’s second quarter, he said. In addition, family members of those found to have died as a result of the faulty switches will receive no less than $1 million.

Feinberg, who also administered the victim’s compensation fund for the Sept. 11 terrorist attacks and the Boston Marathon bombings, said there would be no cap on how much money GM will spend compensating those affected.

He also outlined several factors that would not prevent someone from filing a claim, including driver negligence. Other factors that would not prevent the filing of a claim also include whether an accident occurred before GM's 2009 bankruptcy filing and whether people had previously settled claims with the No. 1 U.S. automaker.

However, any claimants who accept compensation will waive the right to sue GM.

Overall payments to the family of victims would involve a calculation of lifetime earnings lost and an additional $300,000 for a surviving spouse and for each dependent.

In an interview with The New York Times, Feinberg gave a hypothetical scenario of how the program will work: The family of a 25-year-old married woman with two children making $46,400 a year who was killed as a result of the faulty ignition switch would receive $4 million.

Those who survived an accident but suffered major, life-altering injuries would likely receive more.

Claims on the fund can be filed for five months starting Aug. 1, he said.

In February, GM began recalling 2.6 million older-model cars linked to the defective switch, which can be jarred out of the run position and deactivate power steering, power brakes and air bags. The recalls included Chevrolet Cobalts and Saturn Ions. With the latest anouncement on Monday, GM has recalled nearly 30 million cars — some unrelated to ignition switch problem — since its investigation began.

Chief Executive Officer Mary Barra previously said the fund was intended to compensate “every single person who suffered serious physical injury or lost a loved one” as a result of the bad switch.

Details of the compensation program began to emerge during congressional testimony by Barra on June 18 and in subsequent interviews with plaintiffs' lawyers.

However, Feinberg declined to speculate how many claims would be filed or how many deaths may end up being linked to the faulty switch.

"I don't know about 13 or 50 or whatever," he said. "I will not speculate until people file a claim."

During the hearing, U.S. Representative Diana DeGette of Colorado suggested there could be as many as 100 deaths linked to the faulty switch. GM has said that Feinberg will ultimately determine that number.

Feinberg also declined to estimate how big the ultimate payout could be. Safety advocates have called on GM to create a fund of more than $1 billion.

While Feinberg expects to wrap up the fund by the end of June, it would remain open as long as needed to process claims.

The filing period, which ends Dec. 31, provides "ample time to come up with the documentation to corroborate their claim," Feinberg said.

Al Jazeera and wire services