ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Friday, July 5, 1996 TAG: 9607050091
SECTION: BUSINESS PAGE: A-5 EDITION: METRO
DATELINE: DETROIT
SOURCE: Associated Press
General Motors Corp. said Thursday it struck a tentative settlement of class-action lawsuits over pickups that critics claim had dangerous side-mounted gas tanks, not because of safety concerns, but because it wants to end the issue.
``We feel it is time to bring this issue to a close ... because it is the fair thing to do for our customers who have heard and read so much misleading, erroneous information about these trucks for several years,'' GM attorney Lee Schutzman said in a statement.
A Louisiana judge Wednesday approved an agreement to settle nationwide class-action suits over GM's C-K trucks made from 1973 to 1986, and the 1987 to 1991 R-V trucks.
The settlement would give an estimated 5 million truck owners $1,000 toward any new GM vehicle, except Saturns or electric vehicles, GM spokesman Ed Lechtzin said Thursday.
A plaintiff's attorney estimated the settlement was worth $5 billion, but Lechtzin disputed that.
``It is a figure someone yanked out of the air. How many of these (certificates) will actually be used? You can't say how much it's going to cost GM. We don't have any cost out of our pocket,'' he said.
``If this is someone who buys a vehicle who normally otherwise would not have bought a new vehicle, then that's a plus sale for us,'' Lechtzin said, adding that the company is not setting aside a special fund for the settlement.
A final settlement could come as early as January 1997, said plaintiffs' attorney Pat Pendley. Under the proposed settlement:
Individual truck owners could use their certificates for up to 15 months, even if they sell their trucks. They could also transfer the certificate to another person who could use it for $500 off the price of a new GM vehicle during the 15-month window.
After 15 months, certificates for individual owners would be worth $500 for the next 18 months. Transferred certificates would be worth $250.
Fleet owners or governmental bodies would also get the $1,000 certificates, but with different rules on transferring them and with a longer time frame for using them.
LENGTH: Medium: 52 linesby CNB