Financial News

  • 21 May 2014, 9:49

GM To Recall Another 2.4 Million Vehicles

General Motors has announced another recall - this time 2.4 million vehicles in the US - amid a scandal over a malfuctioning part that has been linked to more than a dozen deaths.

Possible faulty seat belts, gear boxes, air bags and fire issues are blamed for the latest recall - the car-maker's 29th this year.

Models of the Buick Enclave, Chevrolet Traverse, GMC Acadia, Chevy Malibu, Pontiac G6, Cadillac Escalade, Chevy Silverado and GMC Sierra are affected.

GM said in a statement it was aware of 18 crashes and one injury among users of the Malibu and G6 vehicles, but added there had been no fatalities linked to any of the models named on Tuesday.

The firm agreed last week to pay a $35m (£21m) federal fine for concealing deadly defects in ignition switches in some models for more than a decade. 

The car-maker said on Tuesday it expected to take a charge of about $400m in the second quarter because of the safety issues.

Recalls in the first quarter cost the Detroit-based car-maker $1.3bn (£772m), mostly related to the faulty ignition switch.

The firm is under investigation by the US authorities for its handling of that problem, which engineers first discovered in 2001. 

Thirteen people died in crashes linked to the malfunction, the company says, but lawsuits put the actual death toll at 53. 

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