United States automaker General Motors continues to face an uphill battle over its recall of more than 20 million vehicles this year after defective issues arose following a number of deaths in the country.
Now, a lawsuit has been filed against the manufacturer, and reports suggest it could go above $10 billion as car owners say the recalls have hurt their ability to resell their vehicles as more and more customers shy away from GM models.
The lawsuit claims that GM's brand has been damaged as a result of the defective ignition switch and recalls and this has left car and truck owners losing value on their vehicle when they attempt to sell.
The complaint that was filed in Riverside, Calif., argues that GM's failure to respond quickly to the defective ignition switch that caused deaths in the country has led to car values dropping by as much as $2,600 per vehicle. If GM were to lose the lawsuit it could be forced to pay billions to customers in one of the largest lawsuits in history.
Filed by law firm Hagens Berman Sobol Shapiro, the suit argues the case could be worth more than $10 billion, and is aiming to force GM to pay out money to around 15 million auto owners. This is in addition to those vehicles that were part of the recall.
GM has declined to comment publicly on the lawsuit, but the company has argued that the brand is still strong and that it has seen an increase in sales and revenue.
"GM's egregious and widely publicized conduct and the never-ending and piecemeal nature of GM's recalls has so tarnished the affected vehicles that no reasonable consumer would have paid the price they did when the GM brand meant safety and success," the complaint said.
Plaintiff Anna Andrews has claimed that she would not have purchased, or would have paid less, for her used 2010 Buick LaCrosse had GM been more transparent and open about the vehicles defects.
The lawsuit also comes on the heels of a massive marketing campaign by GM which has seen numerous commercials promoting its Buick brand as a unique and different car than previously, aiming to jump-start sales of its vehicles.
The aim for Andrews is a class-action suit against GM where she hopes to get a number of other car owners to join in the battle against GM.
