GM fined $102 million for intentionally hiding defects in its trucks

GM fined $102 million for intentionally hiding defects in its trucks

Following a class action alleging that General Motors knew it was selling trucks and SUVs with faulty piston rings, the firm was penalised $102.6 million by a California court on behalf of owners of those vehicles made between 2011 and 2014.
The fourth generation Vortec 5300 LC9 engine suffered from high oil consumption as a result of this manufacturing flaw, which also caused early engine breakdowns.

Plaintiffs’ attorney Clay Barnett stated: “We are glad that the jury thoroughly grasped the evidence and found in our favour. how much it will cost to fix the issue.

The plaintiffs countered that despite filing numerous complaints and warranty claims, GM required them to use less effective fixes to solve the issue in order to save money. GM’s response was that less than 3% of the affected vehicles required repairs to reduce fuel consumption, and it was asserted that piston ring defects were not common in its cars.
As a result, the court chose to impose a total fine of $102 on General Motors.

6 million, providing $2,700 to each of the 38,000 impacted individuals.
Karskops asserts that since several consumers have experienced the same issue with various models and the renowned American carmaker has not provided definitive remedies, this will not be the final case brought against the company.

According to the most recent court participant, Adam Levitt, the judgement against General Motors is one of a “rare” number of verdicts against automakers for warranty breach and consumer fraud. This could pave the way for the filing of additional lawsuits in the future, either against General Motors or against other parties.

GM was penalised $102 million for wilfully concealing truck flaws.

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