As if GM didn’t have enough problems, today’s reports have North America’s biggest automaker facing a court decision that could force it to pay out millions of dollars in two class-action lawsuits involving its Dex-Cool engine coolant. The lawsuits allege GM’s proprietary Dex-Cool brand coolant failed to protect V6 engines from corroding, leading to repairs.
The hearing is due to take place on August 29 in an Alameda, California Supreme Court, and could cost GM billions, as 20 million customers make up the settlement, with GM paying up to $800 to each, according to Automotive News. Dex-Cool, billed to last five years or 150,000 miles, or more than twice the life of convential coolants, has been used in GM vehicles since the 1995 model year, and the suits allege it formed a sludge that caused coolant leaks, leading to engine failures in some cases.
Customers eligible for reimbursements have until Oct. 27 to submit a claim. Other costs, such as up to $27 million in attorney fees and awards to customers who started the lawsuit, as well as advertising and direct mailings, would also be GM’s responsibility.
Owners who performed the following repairs are eligible to join the lawsuit: replaced lower intake manifold gasket in 20 models built for the 1995-2003 model years and powered by the 3.1- or 3.4-liter V-6 engine, as well as any repairs caused engine coolant sealing issues on more than 10 vehicles built between 1995 and 2004, and powered by the 3.8-liter V6.
