Home News General Motors Recall Charge at $700m as Tally Hits 20 Million

General Motors Recall Charge at $700m as Tally Hits 20 Million


By Tim Higgins and Jeff Plungis

General Motors Co. (GM) is calling back 3.36 million more vehicles, the latest order related to ignition flaws, and said second-quarter charges for such moves would reach $700 million.
The biggest U.S. automaker said it’s recalling seven models because of stalling issues: the Buick Lacrosse from 2005-2009; the 2006-2014 Chevrolet Impala; 2000–2005 Cadillac Deville; 2004–2011 Cadillac DTS; 2006–2011, Buick Lucerne; 2004–2005 Buick Regal LS and GS; and the 2006–2008 Chevy Monte Carlo.
The ignition switch may inadvertently move out of the “run” position if the key is carrying extra weight and is jarred, the Detroit-based company said in a statement. GM said it’s aware of eight related crashes and six injuries.
Chief Executive Officer Mary Barra is preparing to testify again before Congress this week to address unanswered questions about why GM waited years to initiate a recall in February for 2.59 million cars with ignitions that could be knocked out of “run,” disabling air bags. The new recalls, along with last week’s Chevrolet Camaro to fix a key design, signal a change in thinking at GM, said Karl Brauer, senior analyst at Kelley Blue Book.
“A certain amount of people inside GM knew this issue existed and their assumption was it’s a pain, it’s not a death sentence, it’s just an annoyance,” Brauer said in a telephone interview. “A stall is now seen as an absolute undeniable safety risk as opposed to an annoyance or an inconvenience — that’s what’s changed.” (Bloomberg)

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