General Motors (GM) is facing the consequences of a major vehicle defect that has led to a class action settlement. The lawsuit alleged that several of the company’s popular models were equipped with a faulty gear shifter, causing a persistent and dangerous “Shift to Park” issue. This defect prevented the car’s transmission from correctly recognizing when it was in the “park” position—even when the driver had shifted it manually.
The result? Many GM drivers found themselves unable to fully power off their vehicles, posing both a safety concern and an inconvenience.
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What Is the “Shift to Park” Defect?
The defect at the heart of the lawsuit affects the vehicle’s transmission system. Even after physically placing the shifter in “park,” the car fails to register the change. This malfunction means:
- Drivers can’t turn off the ignition
- Warnings appear on the dashboard prompting drivers to “Shift to Park”
- Vehicles may drain battery or remain partially operational, increasing risk
While General Motors has not admitted to any wrongdoing, the company has agreed to a class action settlement to address consumer frustrations and avoid the high cost of prolonged litigation.
Who Qualifies for the GM “Shift to Park” Settlement?
Eligible Vehicle Models
The class action settlement covers specific GM vehicle models and years. You may qualify if you bought or leased one of the following:
- 2017–2019 GMC Acadia
- 2019 Chevrolet Blazer
- 2016–2019 Chevrolet Malibu
- 2018–2019 Chevrolet Traverse
- 2016–2019 Chevrolet Volt
Eligibility by Location
- Ohio: Initial purchasers and lessees of the above vehicles
- Tennessee: Only applies to 2017–2018 GMC Acadia initial purchasers and lessees
If a vehicle has more than one owner or lessee, the settlement amount will be divided equally among the parties.
What Compensation Is Available?
$500 Cash Payment
Eligible class members can receive a one-time payment of $500 for owning or leasing an affected vehicle.
Up to $375 Repair Reimbursement
Those who paid out-of-pocket to fix the issue may qualify for an additional reimbursement of up to $375, as long as they provide proper documentation such as:
- A repair invoice
- A service order with matching VIN and repair dates
If your repair was recorded in GM’s warranty and customer pay system, you may be automatically eligible for this reimbursement.
How to Claim Your Settlement Benefits
To receive benefits, you must submit a valid claim form by August 19, 2025. Claim forms require proof of ownership or lease, along with any repair documentation if you’re requesting reimbursement.
Key Deadlines
- File a claim by: August 19, 2025
- Object or opt out by: July 21, 2025
- Final court approval hearing: August 22, 2025
What Is a Class Action Settlement?
A class action lawsuit allows a group of people with similar complaints to collectively pursue legal action against a company or entity. These suits often end in settlements where companies agree to pay compensation without admitting wrongdoing. Once you accept a payout, you typically waive your right to sue the company individually for the same issue.
In this case, General Motors agreed to settle the lawsuit to address concerns without continuing a lengthy legal battle.
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About General Motors
General Motors Company, headquartered in Detroit, Michigan, is one of the largest automakers in the world. The company operates iconic brands like:
- Chevrolet
- GMC
- Cadillac
- Buick
With annual revenue exceeding $40 billion, GM plays a major role in the U.S. automotive market—and this settlement is a significant chapter in its ongoing customer relations efforts.
Final Thoughts
If you own or lease one of the listed GM models and have experienced the “Shift to Park” issue, you may be entitled to up to $875 in compensation. Make sure to gather any relevant documents and submit your claim before the deadline.
