A new dark chapter in the U.S. automotive industry shakes the country, well, dark depending on who you ask. Some drivers of Chevrolet and General Motors (GM) vehicles have received incredible news this week: some may be eligible to receive up to $12,700 as financial compensation after a historic settlement. We’ll tell you everything below, and maybe you’re among the lucky ones getting this money.
What happened?
A court ruling has just ordered Chevrolet and GMC to financially compensate some vehicle owners with up to $12,700 after a defective fuel pump was found in diesel vehicles equipped with a high-displacement V8. This ruling was accepted as part of a preliminary $50 million settlement that General Motors, the parent company of both brands, has agreed to pay.
Which vehicles were affected?
The affected vehicles included diesel Chevrolet Silverado and GMC Sierra Duramax models built between 2011 and 2016, which were equipped with 6.6-liter Duramax LML or LGH engines and the CP4 pump. But be careful: only vehicles purchased in California, Illinois, Iowa, Texas, New York, and Pennsylvania qualify. Vehicles from other states are not included in the lawsuit or compensation.
But what was wrong with these vehicles?
The lawsuit claimed that the pump was not compatible with the type of diesel sold in the mentioned states. As you can imagine, the result was catastrophic. Since it didn’t lubricate properly, the pump would grind itself down and destroy itself, releasing metal shavings that spread through the system. Of course, that kind of repair has to be paid for, and it costs around $12,000.
That’s why owners of these vehicles didn’t hesitate to join a class action lawsuit against General Motors, and now the judge has ruled in their favour.
Approval of the settlement: no doubt about it
U.S. District Judge Terrance G. Berg ruled in favour of consumers on July 11 after concluding that General Motors knowingly sold these vehicles with the defective pump, forcing consumers to pay for repairs out of pocket, repairs that clearly should never have been their responsibility.
So, he quickly approved reimbursement for the costs incurred by drivers and added a 12-month extension to the warranty to cover potential future failures, bringing the total refund that General Motors is responsible for to $50 million.
So, how much can I receive?
If you’re one of the people who filed a claim, the average amount you can receive is estimated at $6,300 to cover expenses, but it could go up to $12,800 if there are not too many claimants. Additionally, GM will cover 50% of the repair cost if the pump fails again.
How do I know if my vehicle qualifies?
First, check using your VIN number (the tracking code for your vehicle, which you can find on the dashboard) to see if your vehicle is included in this class action lawsuit. Just go to GM’s official recall page and follow the instructions provided.
Of course, if you qualify, keep all invoices and payment receipts related to your vehicle’s fuel system repairs, as they will be key to determining how much compensation you’ll receive.
What is a class action lawsuit?
When several users of the same product discover a common defect, they decide to start a class action lawsuit so they don’t have to face “the giant” alone and can share legal costs. In most cases, class actions are usually ruled in favour of users, as companies prefer to end the legal process quickly, but that doesn’t mean they admit fault. That’s what happened here: General Motors has not admitted legal responsibility for the error, but they have agreed to pay in order to avoid damage to the company’s reputation and reliability. That’s how the market works!
If you think you qualify for this payment, don’t hesitate to apply.