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U.S. Government Said Unaware of GM Faulty Switches in Bailout

The task force President Barack Obama set up to manage General Motors Co.s bailout and bankruptcy in 2009 wasnt aware of the faulty ignition switches linked to 13 deaths in small cars, said people familiar with the matter.

By Jeffrey McCracken, Bloomberg, Tiffany Kary | Updated on April 03, 2014
Family members of victims who died from crashes caused by GM safety defects stand on Capitol Hill. (AP Photo/J. Scott Applewhite)

(Bloomberg) — The task force President Barack Obama set up to manage General Motors Co.’s bailout and bankruptcy in 2009 wasn’t aware of the faulty ignition switches linked to 13 deaths in small cars, said people familiar with the matter.

Had it come up, the task force would have considered setting aside more money for the GM estate left behind after the Detroit-based automaker filed for bankruptcy in June 2009, said the people, who asked not to be named because their meetings were confidential. At the time, GM’s board and the task force based their projections for product-liability claims on a report that the GM estate would face about $414 million for pre- bankruptcy crashes, according to court papers.

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