General Motors pays out $880 million for lawsuits

General Motors confirmed yesterday that it paid out almost US$500 million ($880 million) to settle lawsuits brought by victims injured in accidents involving a popular line of GM utilities.

The Los Angeles Times, quoting from recently unsealed court papers, reported earlier that the world's biggest automaker had shelled out US$495 million to settle 297 suits by late 2000. That averaged US$1.67 million a claim.

The sums that automakers pay out to settle this type of litigation are normally confidential.

But reporters asked a judge in Montana to release the information which was contained in an exhibit in a case brought by the estate of a family killed in a pickup accident.

The cases involved C/K pickups - a large, usually four-wheel drive ute - that had fuel tanks mounted outside the vehicle's protective frame. Critics say the design made the fuel tanks prone to explode in crashes.

A Times investigation claimed at least 65 people were believed to have burned to death in C/K crashes.

GM spokesman Jay Cooney insisted that the number and size of the settlements did not mean that the C/K pickups were unsafe.

GM produced more than 10 million of the pickups from 1973 to 1987 with fuel tanks outside the frame. It then changed the design.