In a year of record-breaking recalls, General Motors may be forced to pay billions of dollars in fines, charges and settlement funds, according to recent media reports. The Motley Fool put an early price tag on the company’s total bill at around $6 billion.
“It’s absolutely a very substantial amount of money,” Kyle Logue, a law professor at the University of Michigan who specializes in torts, told InsideCounsel in an interview.
Michael Smitka, a professor of economics at Washington and Lee University and co-author of the Autos and Economics blog, told InsideCounsel, “Several billion dollars is painful, but that’s not fatal to a company the size of General Motors.”
The GM brand looks like its can survive, as well. “Consumers are not viewing GM as a disaster area,” Smitka said. He cited data which showed that overall GM market share increased by 2.1 percent from March 2014 to June 2014.