GM recalls another 1.5 million vehicles, to take $300 million charge

Chevrolet cars are seen at a GM dealership in Miami, Florida in this file photo from August 12, 2010. Credit: Reuters
Chevrolet cars are seen at a GM dealership in Miami, Florida in this file photo from August 12, 2010. Credit: Reuters

General Motors Co. announced three more recalls on Monday, related to airbag deployment and other issues, and said it would take a $300 million charge primarily to cover the costs related to these actions as well as the previous recall for faulty ignition switches.

The No. 1 U.S. automaker, which will take the charge in the first quarter, did not provide a breakdown of how much was related to the ignition-switch recall of more than 1.6 million older-model vehicles that has hurt the company’s reputation since it was announced last month.

GM said on Monday that it is recalling more than 1.5 million newer crossover utility vehicles, luxury sedans and full-size vans in three separate recalls. While there were reports of engine compartment fires in two dealer-owned Cadillac XTS sedans, the company said it has received no reports of accidents or injuries related to the three new recalls.

The automaker said the latest recalls include 1.18 million mid-sized crossovers to repair an issue that could lead to the nondeployment of side airbags. It said it will repair the wiring harness of seat-mounted side airbags.

Affected are some 2008-2009 and all 2010-2013 Buick Enclave and GMC Acadia crossovers, some 2009 and all 2010-2013 Chevrolet Traverses and some 2008-2009 and all 2010 Saturn Outlooks. Most of the vehicles were sold in the United States, but some are in Canada and Mexico.

The Detroit automaker also is recalling 303,000 Chevrolet Express and GMC Savana full-size vans to replace plastic material in the passenger instrument panel to meet federal head-impact crash standards for unbelted passengers, a spokesman said.

Affected are vans from model years 2009 through 2014 that are rated to carry up to 10,000 pounds including the vehicle’s own weight, the spokesman said. Most were sold in the United States, but also in Canada, Mexico and other markets.

In the XTS, a brake booster pump wiring issue can lead to overheating, melting of plastic parts and a possible engine compartment fire, the spokesman said. There were two reports of fires in unsold cars on dealer lots in June and September last year as well as two cases of melted components.

Affected are 63,900 of the 2013 and 2014 luxury sedans, mostly in the United States, but also in Canada, Mexico and a small number in the Middle East, the spokesman said.

GM said the new recalls resulted from Chief Executive Mary Barra’s push for a comprehensive internal safety review following the ignition-switch recall. She previously apologized for how GM handled that action and said the company would take an “unvarnished” look at the process while making customer safety and satisfaction its top priority.

“I asked our team to redouble our efforts on our pending product reviews, bring them forward and resolve them quickly,” Barra said in a statement on Monday. “That is what today’s GM is all about.”

“We are conducting an intense review of our internal processes and will have more developments to announce as we move forward.”

The ignition-switch recall has led to government criminal and civil investigations, an internal probe by GM and preparations for hearings by Congress. All ask why GM took so long to address a problem it has said first came to its attention in 2001.

On Friday, the Detroit automaker was hit with what appeared to be the first U.S. class action lawsuit related to the ignition-switch recall, as customers claimed their vehicles lost value because of the ignition switch problems. The proposed class action was filed in a Texas federal court.

GM shares were up 0.4 percent at $34.23 on the New York Stock Exchange on Monday afternoon.

 



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