With four recalls over the space of a few days, and reaching so far a tally close to 15.4 million recalled cars, General Motors has also announced it’s forecasting the second quarter charge is set to double.
Just yesterday, the No.1 US automaker announced another 2.6 million cars are being called back to the services, a shameful tally adding to the high profile recall issued late February, concerning several models and around 2.6 million cars equipped with defective ignition switches. As we all know, the timing of the recall was way off, with the automaker now facing five federal probes, a host of fines and a mountain of lawsuits.
After in the first quarter of the year GM took a huge charge, of $1.3 billion, mostly linked to the ignition switch recall, for the second quarter the carmaker is expecting a $400 million charge, again mostly in relation to recall-related repairs.
Just to put into perspective the actions for the year so far at General Motors, the 29 issued recalls and the total number of cars – considering it’s not even June yet, has already exceeded all the actions taken in the previous five years.
So far, in the extensive investigation faced by GM over the defective ignition switches, the NHTSA and the Department of Transportation fined the company the maximum allowed of $35 million, adding that it also broke the law since it knew about the defect at least since 2009.
by Aurel Niculescu
) - Wednesday, May 21st, 2014 - filed under General Motors
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