Financial News

  • 18 June 2014, 8:55

GM Car Ignition Fault Recall Soars To Six Million

General Motors (GM) has confirmed a new recall of over three million cars for ignition switch problems - more than doubling the number of vehicles dogged by the issue.

GM said it was to repair 3.36 million mid-size and full-size cars - on top of the 2.6 million Chevrolet Cobalt models and other small cars already recalled following 13 deaths.

More than half a million Chevrolet Camaroswere added to the list last Friday taking the total for ignition faults past 6.5 million.

The company said its latest recall was aimed at correcting a fault that meant ignition switches could be jarred out of the"run" position, potentially affecting power steering, powerbrakes and air bags.

The issue - which will require keys to be replaced or reworked - has been linked to eight crashes and six injuries.

GM engineers first noted the Cobalt problem more than adecade ago, and GM's slow response to the switch issue triggeredinvestigations within the company, by Congress and federalagencies - piling pressure on the brand and its chief executive Mary Barra.

It was last month fined by the US government for its failure to urgently address the crisis.

The latest recall takes to around 20 million the number of cars recalled for work this year alone by GM - with 6.5 million of them related to the ignition switch scandal.

It means the company's total bill for recall-related charges will top $2bn for the year to date, GM said on Monday.

The latest recall includes Buick LaCrosse, Chevrolet Impala,Cadillac DeVille and several other models from the year 2000 through to 2014.

Mrs Barra is due to return to Congress to testify about the earlier Cobalt recall on Wednesday alongsideAnton Valukas, the chairman of GM'soutside law firm Jenner & Block, who conducted the investigation that detailed deep flaws in GM's internal decision-making processes.

The so-called Valukas report triggered the departures of 15 GM employees including several high-ranking executives in the legal, engineering and public policy groups.

Among them was the engineer who has been blamed for designing the defective Cobalt switches, Ray DeGiorgio.

GM said he also designed the switches on thelatest batch of recalled cars.

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