General Motors (GM) reached a class action settlement to resolve the claims that some of its vehicles were being sold with a faulty gear switching system that has a problem of Shift to Park. Drivers in Ohio and Tennessee claimed that their cars were not able to acknowledge them being in park and an error appeared necessitating drivers to restart their cars despite attempts to turn them off. The GM defective shifter settlement provides defective owners and defective lessees with the ability to seek cash benefits and for repair reimbursement.
This article provides information on how to be eligible, the level of compensation that is provided, and the narrow timeframes of claim filing before time runs out.
What Is the GM Defective Shifter Issue?
The so-called “Shift to Park” defect has been observed in a number of GM cars, specifically the GMC Acadia, Chevrolet Malibu, Chevrolet Blazer, Chevrolet Traverse, and Chevrolet Volt. A challenge that was faced by the owners consisted of the vehicle failing to detect when parked. This became a problem such that a message Shift to Park appeared on the dashboard screen and even could not take off the engine.
Drivers were forced to keep switching gears to remove the message. In the long-term, the issue posed safety issues, battery leakage, and hassle. The unaffordable repairs allowed many owners to spend their own money on fixing vehicles when GM allegedly did not provide efficient warranty repair.
Why Did GM Agree to Settle?
GM did not provide any wrongful action but was willing to make a settlement to a court of action in order to save the expenses and time of a lawsuit. The settlement pays compensations to Ohio and Tennessee affected vehicle owners and lessees who have suffered this problem within the warranty coverage.
The settlement includes two major groups:
- Ohio Subclass: First purchasers or lessees of 2017-2019 GMC Acadia, 2019 Chevrolet Blazer, 2016-2019 Chevrolet Malibu, 2018-2019 Chevrolet Traverse, or 2016-2019 Chevrolet Volts vehicles that were purchased or leased in Ohio.
- Tennessee Subclass: First purchasers or lessees of 201718 GMC Acadias purchased or leased in Tennessee.
Both subclasses consist of individuals, who took a warranty repair at a GM dealer due to the problem of Shift to Park at the warranty period, and were not provided with silicon-free replacement parts.
How Much Can You Receive from the Settlement?
The individual base class members are eligible to get a total benefits total of up to $875:
- $500 Cash Payment: Every eligible owner or lessee will receive a $500 payment. In case of more than one part-owner or co-lessor of a vehicle, he or she and the other(s) will equally share this part amount.
- Up to $375 Repair Reimbursement: Class members who out-of-pocket repaired the flawed Shift to Park substitute will receive up to 375 dollars worth of reimbursement. GM will subsequently automatically provide people who are featured in their warranty and customer pay data with reimbursements. Individuals not part of the GM records need to provide evidence to prove payment and repair documents.
These advantages assist in covering the inconvenience and the cost of fixing that recurring defect that inconvenienced affected owners.
What Proof Is Needed?
In case of failure to record your name in GM warranty data, you are required to provide a valid claim form with supporting documents. This may include:
- Service record or repair invoice
- Proof of payment
- An account of the performed work
- Car number (vehicle identification number (VIN)
- Name of service and date of repair facility
By having full and clear documentation, you can be assured of easy processing of your claim.
Important Deadlines to Remember
On February 20, 2025, the court gave the green light to the GM defective shifter settlement. The following mainly important upcoming dates should be mentioned:
- Deadline of Submission of Claims: August 19, 2025.
- Exclusion or Objection Deadline: July 21, 2025.
- Final Approval Hearing: August 22, 2025.
To get paid, you are required to submit your claim form on line or through mail before the due date.
How to File a Claim
Eligible owners of vehicles may proceed to the official GM settlement site in order to make claims. The site allows users to:
- Submit a claim form online
- Detect whether it is in the warranty or the customer pay data of GM
- Download and mail a PDF claim form
- Keep track of key developments of the settlement
In case you were issued a personalized settlement notice, then you can file a claim quicker with the help of your unique claim ID and using your PIN.
What Happens Next
The court will decide on granting final approval to the terms of settlement after the last hearing of approval which will take place in August 2025. After the approval is received, payments and reimbursements will be made to the eligible class members.
The settlement offers much deserved compensation to drivers who had recurring problems with Shift to Park with no effective resolution. It also shows the relevance of class actions in bringing big car manufacturers into book as to the product malfunctions.
Final Thoughts
The GM defective shifter settlement provides as much as $875 in cash and reimbursement to owners and lessees who meet the qualification requirements. Even with the Shift to Park issue that affected your GM car, you need to do so before the August 2025 deadline and get your benefits.
Your early claim guarantees you your eligibility and you do not waste this chance given to you as a way of compensation.
The official settlement site can give you more information and you can make a claim.