The next challenge for GM amid its recall of 2.6 million vehicles after years of inaction is how to deal with hundreds of injury claims that the company has refused to discuss or characterize, the New York Times reported today. Some experts predict the cost to the company could run into the billions of dollars, exceeding the payouts related to deaths linked to the defect. Kenneth R. Feinberg, the victim-compensation expert hired by the company, is nearing the final stages of an elaborate process to determine who is eligible for payments and for how much. His plan, which is expected to be made public in the next two weeks, is seen as critical to the company’s ability to move beyond an issue that has prompted numerous investigations, congressional hearings, a $35 million federal penalty and withering public criticism. While it will not come cheap, getting the payment plan right is crucial. Too generous and it could slow the automaker’s comeback from bankruptcy; not generous enough and victims will seek justice through lengthy and costly court battles, further dragging out the company’s turmoil.
