General Motors

GM Faces $100M Penalty for Engine Defects in Class Action Lawsuit

General Motors was handed a $100 million verdict as a result of a lawsuit filed over its engine defect. The legal action claimed that some GM vehicles were equipped with defective engine components that caused excessive oil consumption, leading to engine damage and failure. The plaintiffs argued that GM knew about the defect but didn’t disclose it. This verdict could have significant implications for GM and the auto industry.

Background of the Engine Defect Issue

The issue was discovered in 2014 when customers reported problems with their engines, including sudden loss of power and stalling. Initially, they believed the problem was with the ignition switch, but further investigation found that it was due to a flaw in the engine’s oil consumption system. It caused the engines to consume oil, leading to engine damage and failure. 

The affected vehicles include: 

  • GMC Sierra
  • Chevrolet Avalanche
  • Silverado
  • Suburban
  • Yukon and Yukon XL and
  • Tahoe

Class-Action Lawsuit against GM

The lawsuit accused GM of using faulty engine parts in certain vehicles sold from 2011 to 2014, causing early engine failure. GM knew about these issues but didn’t tell customers. It was brought by thousands of affected customers seeking compensation for repair costs, diminished vehicle value, and other expenses. The jury found GM guilty and ordered them to pay $100 million. It is a setback for GM, which has had many legal problems related to vehicle defects.

Implications of the Verdict

The verdict has significant implications for both GM and the plaintiffs involved in the lawsuit. For GM, the verdict may serve as a warning to prioritize quality control and avoid similar defects in the future. The automaker may also need to allocate resources towards compensating affected customers and repairing faulty engines. On the other hand, the plaintiffs may receive compensation for their damages, including costs associated with repairs, lost wages, and other related expenses. The verdict may also impact ongoing lawsuits against GM, particularly those related to the company’s ignition switch defect, linked to several deaths and injuries.

The $100M Settlement

GM must pay $100 million as part of the settlement for a class-action lawsuit regarding an engine defect. The lawsuit alleged that GM knowingly sold vehicles with defective engines that caused the cars to stall or experience a sudden power loss. The settlement was reached after a jury trial in a federal court where the plaintiffs argued that the defect caused safety hazards and reduced the value of the affected vehicles. Despite GM denying wrongdoing, the settlement includes compensation for repairs or losses incurred due to the defect and provisions for additional repair and extended warranties. 

Bottom Line

To sum up, General Motors (GM) has to pay $100 million for engine defects that caused engine failures and fires in certain vehicles, risking consumer safety and harming the company’s reputation and finances. This incident highlights the importance of ensuring product safety and quality control before market release. Swift action to rectify defects is necessary to protect consumers and brand trust. The penalty also shows how class action lawsuits hold companies accountable and compensate affected consumers seeking justice for damages caused by faulty products.

Lemon Law firm helps people recover compensation who were sold vehicles with manufacturing defects. If you’re experiencing issues with your vehicle, call (833) Lemon-firm to speak with our expert attorneys.

Source: Jewett, A. (2023) Drivers fight back against GM’s challenge to $100M engine defect verdict, Top Class Actions. Available at: (Accessed: March 30, 2023).